Question
Which statement is correct? When a firm announces a seasoned equity offering, markets generally interpret this as a negative signal that management believes the firm
Which statement is correct?
| When a firm announces a seasoned equity offering, markets generally interpret this as a negative signal that management believes the firm is overvalued. The stock price increases as a result of this interpretation. | ||
| When a firm announces a seasoned equity offering, markets generally interpret this as a negative signal that management believes the firm is overvalued. The stock price drops as a result of this interpretation. | ||
| When a firm announces a seasoned equity offering, markets generally interpret this as a positive signal that management believes the firm is undervalued. The stock price decreases as a result of this interpretation. | ||
| When a firm announces a seasoned equity offering, markets generally interpret this as a positive signal that management believes the firm is undervalued. The stock price increases as a result of this interpretation. |
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Green And Sustainable Finance
Authors: Simon Thompson
2nd Edition
1398609242, 978-1398609242
