Studies on the timing of corporate issues of new equities suggest that corporations tend to offer

Question

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The timing of corporate issues of new equities tends to be after stock price increases, which is inconsistent with the weak form of the efficient market hypothesis. According to this hypothesis, stock prices already reflect all available information and new information arises randomly, making it impossible to profit based on past prices. However, corporations appear to time their new equity issues strategically based on their stock price increases, suggesting that they believe they can benefit from the demand for their stock during a period of price increase.

Studies on the Timing of Corporate Issues of New Equities