Small caps selling off after good news is just investors trading...

Small caps selling off after good news is just investors trading the macro environment and getting out of stocks. They are using the volume generated by a good announcement to get out of a position because they think it’s going down further. It is typical of a bear market. Everyone knows that small caps suck in a bear market. People trading out of small caps might be both retail and sophisticated investors.

What I was trying to say before is that if sophisticated investors participate in a capital raise in a bear market, they are not going to trade the stock. They are generally there for the long term because they got in knowing that there might be share price weakness in the short term due to the bear market.