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I apologize for maybe starting to wear out the subject of "offering common shares to raise capital" but I'm still trying to get a handle on it.
I notice that several of these stocks(probably all of them) that offer up a gazillion shares of diluting common stock as a way to raise capital....at the end of the trading day before the announcement is made....there are a ton of shares being bailed on. I'm assuming somebody knows that this is going to happen & they dump the stock...right? I don't want to sound like a babe in the woods or anything but...this is true right? Insiders have to know before the news is put out & they sell big...correct.
When ETFC did this recently I noticed there was a lot of selling in the last few minutes...I should have got out but was praying it would gap up..not. The announcement was made right after 4pm.
Anyway...my question, insiders have to know beforehand that the offering of common shares is going to made, right?
I notice that several of these stocks(probably all of them) that offer up a gazillion shares of diluting common stock as a way to raise capital....at the end of the trading day before the announcement is made....there are a ton of shares being bailed on. I'm assuming somebody knows that this is going to happen & they dump the stock...right? I don't want to sound like a babe in the woods or anything but...this is true right? Insiders have to know before the news is put out & they sell big...correct.
When ETFC did this recently I noticed there was a lot of selling in the last few minutes...I should have got out but was praying it would gap up..not. The announcement was made right after 4pm.
Anyway...my question, insiders have to know beforehand that the offering of common shares is going to made, right?
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