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retaker
11-05-2002, 04:53 PM
I've seen a questions where they claim that "issuing additional shares doesn't automatically reduce share price",

but I know from the book that they say "announcement of new issue causes about a 3% decline in share price"

Is the difference that one is additional shares vs. new shares.

Any Idea Gandolf?
The Drunken Actuary
11-05-2002, 05:02 PM
Skip the finance and concentrate on the interest theory and Micro. Guess the rest of the way to a 6!
retaker
11-05-2002, 05:06 PM
Too late, I already know almost everything that is in any of the study manuals. Shooting for a 10, just out of principles - since they gave me a 5 last time. :evil:

I am trying to learn every single possible detail.
The Drunken Actuary
11-05-2002, 05:12 PM
Too late, I already know almost everything that is in any of the study manuals. Shooting for a 10, just out of principles - since they gave me a 5 last time. :evil:

I am trying to learn every single possible detail.In that case good luck. How did you learn every single detail in all the study manuals? How long did that take?
Dr T Non-Fan
11-05-2002, 05:17 PM
I don't know about the materials, but if a company issues stock to buy another company (or do some stock-trade deal) that will generate more EPS than the company currently earns, then that would be a reason for the shares to increase in price.
But, this is rational thinking, and the 3% drop is usually the result of not rational thinking. Also, 3% sounds like an average, which could mean the stock could rise in some cases.
retaker
11-05-2002, 05:29 PM
It took me much more time than I would have liked!!!!

I never had any business before I started studying this crap. I reeally should have passed last time. This is another injustice of the SOA.

I'll get them back now. Ha Ha Ha hha :evil:

I AM THE COURSE 2 ORACLE. If you have any questions about the material, exam committee, feel free to ask.... :moon: