Daytrading Seasoned Equity Offerings

Discussion in 'Trading' started by chs245, Mar 28, 2002.

  1. chs245

    chs245

    I found an interesting academic paper (http://mba.vanderbilt.edu/faculty/pdf/mktstAug3101.pdf)
    analyzing the price performance within the first couple of hours after a stock offering (seasoned; not IPO). The author finds out that the price adjustment for Nyse listed stocks is too slow, and that you could potentially make money by shorting the stock in the first couple of minutes of trading.
    Sounds interesting enough to attract my interest ;-)

    Now I'm wondering whether anyone has collected data himself regarding stock or convertible offerings and the subsequent stock price performance subsequent reaction ?

    Or is anyone willing to share his experience regarding daytrading these events?

    Oliver