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2,587 Posts.
53
05/07/14
21:35
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When there is a Capital Raising, if none of the big holders come to the party ,then the company goes bankrupt.
Not good for any of the holders.
If only some of the holders stump up new cash,{for example at $00.042} they are upset that they are doing the heavy lifting.
"Wait a minute they say;next time, if we are the ones paying up, whilst others are avoiding bankruptcy on a free ride, we want a bigger slice"
Ie we want more shares for our money, lets say at $00.025. So there it is. That;s how the share price falls.
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