Which statement is correct? O A firm's existing shareholders would prefer that new securities be issued when those securities are overpriced rather than underpriced. A decline in the price of existing stock when a new issue is released is a direct cost of selling securities. Issuing new equity shares is always viewed by the market as a positive event Informed managers tend to issue new securities when the existing securities are underpriced. The financial market generally reacts the same to a new issue of equity as it does to a new issue of debt as long as the issuer is the same