For industrial stocks in the U.S.,the announcement of an SEO usually leads to a decline in stock price,with the decline averaging 3-4%.

Question

Quizplus · Accepted Answer

This statement is true. Studies have shown that when companies announce a secondary offering of stocks (SEO), it often leads to a drop in the stock price, particularly for industrial stocks. On average, the decline can be around 3-4%. This is because SEOs can dilute the value of existing shares and also signal to investors that the company may need to raise capital, which can indicate potential financial challenges.

For Industrial Stocks in the U