In regard to new issues of common stock, economists have found that the announcement of a new issue:

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Economists have found that the announcement of a new issue of common stock leads to an increase in the supply of shares, which can dilute the ownership stake of existing shareholders. This uncertainty and dilution often result in a decline in the stock price. However, the actual impact on the stock price may vary depending on market conditions and investor sentiment.

In Regard to New Issues of Common Stock, Economists Have