Kursutveckling vid nyemissionsmeddelande : Stockholmsbörsen 2000-2004

by Masud, Majed

Stock Corporation is to day’s most common form of corporation on the Swedish market. The stock market is to among other things to provide risk capital for future financing of expansion and development. A way to provide the corporations with risk capital is by new issue, which is of big importance for the renewing and development of trading and industries and also for a continuous good welfare. Each company have its own reason for using a new issue, depending on that reason the stock will of course develop in a certain way, the stock could increase or decrease in value. The purpose of the paper is to empirical test how the share price is developed when a new issue is announced. The examined companies are all quoted on the Swedish exchange and have made new issue between the years 2000 and 2004. It is important to notice that this study is about when the companies announce for a new issue and not when it is actually made, which is normally afterwards. The market expectations of how well the new financial will be used in the company is reflected in the stock value, when the new issue is announced. The result of the study shows that the majority of new issues announcement is followed by decrease in the stock value, the only time when the stock value increase is when the purpose for the new issue is made for a company acquisition