Pricing the strategic value of putable securities in liquidity crises

Article Abstract:

Security holders with put options have first claim on liquid assets of the firm as well as the power to force solvent issuers to bear financial distress costs. The put options have a greater strategic value than their intrinsic value.

Public Finance Activities, Securities Taxes, Options (Finance), Liquidity (Finance)

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Discretionary reductions in warrant exercise prices

Article Abstract:

A reduction in exercise price by managers of a firm induces either a conversion-forcing reduction which results in good performance three years following its announcement, or a long-term reduction, which doesn't perform as well.

Financial management, Stocks, Stock warrants

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Control as a motivation for underpricing: a comparison of dual and single-class IPOs

Article Abstract:

A comparative finding of dual and single-class initial public offerings (IPOs) is illustrated. Several hypotheses for underpricing of dual-class firms are explored.

Science & research, Models, Economic research, Going public (Securities), Initial public offerings, Company public offering

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