Private Placement: This dilution of a share normally leads to the decline of the share price; the impact of this placement can be considered as similar to that of a stock split . However, such an impact can be seen only in the short-term, a long-term effect on the price would take into account the utilization of funds by the Company raised during this placement. If the Company does a private placement of shares to raise capital for a project which could provide better returns; extra profits and revenue from such a project will impact the share price thus pushing it higher.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
afiqzanardi
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Posted by afiqzanardi > 2021-11-01 15:44 | Report Abuse
Nice one