ABC Corp is a public company and announces its intention to raise $300 million b

Question

ABC Corp is a public company and announces its intention to raise $300 million by selling new shares. What do market signaling studies suggest will happen to the firm's stock price on the announcement date? why? ABC Corp is a public company and announces its intention to raise $300 million by selling new shares. What do market signaling studies suggest will happen to the firm's stock price on the announcement date? why? ABC Corp is a public company and announces its intention to raise $300 million by selling new shares. What do market signaling studies suggest will happen to the firm's stock price on the announcement date? why?

Explanation / Answer

It depends on the past performance of the organization. The investors will look at the financial position of the company, current and the past performance and profits, They will also consider the return on investment. The stock price will increase if the performance is good and at par with expectation of the public or it will decrease if the performance has been below par of the expectations of the public.

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