1. Impact of additional issuance on stock price
The company raises funds by issuing additional shares, which may have a certain impact on the stock value. In the case of additional issuance, the total number of shares of the company increases, resulting in a decrease in the value per share. Therefore, if an investor buys the company's shares before issuing additional shares, his investment value will decline.
In addition, additional issuance can also be seen as a reduction in the distribution of old shareholders' rights and interests. Because the shares issued by the company will be transferred to the new shareholders, this will lead to a decrease in the proportion of shares owned by the old shareholders. The interests of the old shareholders are damaged and may express their opposition to the company's issuance. All these may affect the stock price.
2. The impact of additional issuance on the company
The company's additional issuance will also have a certain impact on itself. First of all, issuing additional shares may increase the company's operating costs. Because the company needs to pay the fees and expenses involved in issuing shares. This will lead to a decline in the company's profits and may reduce the company's investor confidence.
Secondly, issuing additional shares may affect the company's stock liquidity. If a company issues a large number of new shares and there are few buyers, then these new shares may be difficult to sell. This will lead to fluctuations in the company's stock market, which may bring unnecessary pressure to investors.
3. Can I buy additional stocks?
For investors, whether to buy additional shares is not a simple decision. If a company issues additional shares to make up for its operating defects, its future may be bleak. If it is to expand business or investment, then the company may be expected to increase revenue and increase the value of the stock.
In addition, it is necessary to analyze the economic trend of the current market. If the whole stock market is depressed, then it may not be the best choice for a company to issue more shares. But if the market trend improves, the company's stock may be welcomed by investors.
Before buying additional shares, we need to study and think in many aspects. Investors should carefully evaluate the company's business, management, stock market and current market trends, and make the most appropriate decision.