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This morning, BIS split. The share price went from 10.53 to 52.3 but the number of shares listed on google finance didn't change. This is called a reverse split. Companies do this to avoid being delisted. See Chesapeake Energy's Hail Mary reverse split months before bankruptcy.


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Something like this happened in 2008 with Volkswagen and in the process caused that company for one day to become the most valuable in the world as all the short sellers, upon discovering their predicament scrambled to try to cover their positions. At the time Porsche was known to have been buying shares and had acquired a 35% stake in Volkswagen, the state ...


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The owner of the shares (A) is the holder of record. When these shares are loaned out for shorting by (B), the original owner has book entry ownership but he is no longer the holder of record and he loses his voting rights to (C), the buyer of the shorted shares. In this process, there is no increase in shares outstanding because (A) no longer holds them ...


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There are two components involved in determining an IPO's price. First, the investment bank determines the value of the company. Next, the company does an IPO Roadshow and is often called a Dog & Pony Show. It lasts for a couple of weeks as the company pitches the IPO to institutional investors (hedge funds, analysts, fund managers, banks). The higher ...


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No, the price is set by the company but crucially is agreed with the underwriter, who undertakes to buy any shares that don’t sell in the market. It’s almost always a premium to the company’s asset value, or there would be no point in the IPO. But it’s generally below the anticipated market price, to give a first-day profit to the IPO investors and reduce ...


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After IPO, if the company wants to issue more stocks, does it issue at the market value? Yes - it sells the new shares to the public for whatever they're willing to pay for it. Technically there's often an intermediary that buys all of the shares then help distribute them in the secondary market (since Facebook is not in the stock trading business), but the ...


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Common stock equity is the value of those shares. The number of shares outstanding typically doesn't change very much. It is only affected by new issuances (rare), buybacks (slightly less rare) and stock compensation awards (common but relatively small). The value of those shares however, changes as the company makes money (among other things). Obviously a ...


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The float is the number of shares sold to the public. For Facebook, it was 421 million shares. The rest of the shares are owned by venture capitalists with the vast majority owned by Zuckerberg (about 28%). The are two types of secondary offerings. A dilutive secondary offering involves creating new shares and offering them for public sale, usually near ...


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