How does asymmetric information explain the negative stock price reaction to the announcement of an equity issue?

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Corporate Finance

ISBN: 9780132992473

3rd Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Mar 07, 2024 01:00 AM

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How does asymmetric information explain the negative stock price reaction to the announcement of an equity issue?

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Asymmetric information refers to a situation where one party in a transaction has more or better inf...View the full answer

Corporate Finance

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