New issue of common shrares to investor
Hi, If a company wanted to get an equity infusion from a new investor, could it issue new shares to the investor and price these shares lower than what the other outstanding shares are trading at? If possible, are there any other key criteria to take into consideration?
Example: Company X has 1,000 shares out standing at $10. Can it issue 100 news shares to company Y @$5?
Thanks!
Voluptatum enim minima assumenda voluptates excepturi. Ducimus eius laborum earum voluptatem aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...