Finance:Wall crossing
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Short description: Technique used by public companies to raise capital
This article or section contains close paraphrasing of a non-free copyrighted source, https://www.wsj.com/articles/SB123050778960138223. (September 2018) (Learn how and when to remove this template message) |
Wall crossing is a technique used by publicly traded companies to raise capital, typically from institutional investors in two stages. In a wall crossing, a publicly listed company tries to raise capital through large stock sales by having institutional investors pre-arranged to buy substantial blocks of newly issued stock ahead of a public announcement of the offering as part of a confidential offering.[1] In order to participate in what is essentially a private placement, investors typically sign a non-disclosure agreement that allows them to "cross the wall", thus becoming insiders and gaining access to material non-public information.[2][3]
References
- ↑ "Over the Wall and Through the Woods: A Look at Wall-crossed Deals - The Global Treasurer" (in en-US). The Global Treasurer. 2009-06-30. https://www.theglobaltreasurer.com/2009/06/30/over-the-wall-and-through-the-woods-a-look-at-wall-crossed-deals/.
- ↑ Cowan, Lynn (2008-12-29). "'Wall Crossings' Provide Fund-Raising Edge" (in en-US). Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/SB123050778960138223.
- ↑ Levine, Matt (June 3, 2015). "Insider Traders Made Some Easy Money on Stock Offerings". https://www.bloomberg.com/view/articles/2015-06-03/insider-traders-made-some-easy-money-on-stock-offerings.
Original source: https://en.wikipedia.org/wiki/Wall crossing.
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