218: Shaun Factor – The Ways of a Small Cap Whale
Chat With Traders
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What Happens When a Stock Is Oversubscribed?
When a company goes to raise money, and it gets exactly what it wanted in bids, but there's no left over buying. This is usually a bad thing because there's not going to be that extra support coming into the market afterwards. But fit say, three or four times, even ten times over subscribed, and you couldn't get stock in the placement, then that's usually a reason why people will buy it. A lot of th times it'll depend on the price as well, on how big the discount is. And probably just as important is who's the broker that's raising the money and what's their track record?
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