Price manipulation around seasoned equity offerings.

• Main Authors: Lau, Yuk Ki., Lim, Roslyn Pei Shan., Tay, Lian Hui.
• Other Authors: Suman Banerjee
• Format: Final Year Project
• Language: English
• Published: 2010
• Subjects: DRNTU::Business::Finance::Equity
• Online Access: http://hdl.handle.net/10356/33517
• Institution: Nanyang Technological University

In this paper, we investigate the possibility of establishing a manipulative equilibrium when a firm announces a seasoned equity offering (SEO) to raise funds for investing in a probable project. We assume that the project has a high probability of downside performance and low probability of a stron...