Welcome to the StockTradingToGo.com Forums! If you arrived here from a search engine, you may want to explore the Main Site first which houses 100s of articles on investment tips, tricks, and education. Also, please feel free to Subscribe to our Free Newsletter.
From all of your experiences, when your stock has a common share offering, what percentage did the stock fall because of dilution, and for how long? In other words, how long does it typically take for a rebound to take effect? I know every case is different, but I'm just loooking for a general answer.
Sorry for the delayed answer but it really does ALL DEPEND. Sometimes the stock soars while other times it sells off. Overall you never really know. If there was a formula then I imagine many investors would take advantage of it.
Hope that helps!
__________________ Blain Reinkensmeyer
Founder, stocktradingtogo.com
Subscribe to the STTG Newsletter.
It depends on the percentage of new share versus existing share.
The pressure effect lasts IMO one year. Sometimes the stock climbs slighly because it's seen as a good news. Then it falls back or stays flat. But the company results is much more important on the price per share than the dilution.
With big dillutions (e.g. C) it's not safe to buy at higher than offering price.
Linear Mode
