Assume ABC stock declines by 2 percent following the announcement of a new stock offering.Also assume the prices in the overall market remained steady on the announcement date.ABC's price decline is best categorized as
A) a direct expense of the issue.
B) a part of the issue's underpricing.
C) an abnormal return.
D) the spread.
E) the overallotment cost.
Correct Answer:
Verified
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