Ive seen a couple of times after a company dilutes, its share price doesnt decrease by the expected amount to keep the market cap the same – sometimes price actually increases after dilution.
Would this be because the market was defacto pricing the company at the post dilution market cap – ie pricing in the expected dilution amount, and a positive/negative surprise is actually what affects price, not the actual amount of the dilution?
Or is there something else going on…
Posted by ben13215
1 Comment
Dw you’re on the right track. Dilution is often already partially priced in before it happens, especially if the market expects it. Might try and keep track of this through tryLattice though just in case… but what really moves the price is whether it’s better or worse than expected, and what the company is using the money for