http://orpheum-nuernberg.de/?bioede=forex-binary-options-no-deposit-bonus&689=50 (2) Promoter Looking To Book Some Profit
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Small investors should not worry about such stake sale provided others conditions are http://teentube.cz/?ertye=descargar-mujeres-solteras-twi-t-%26-ezzy-12-millas&ffe=11 constant. It is because promoters are also invested in a company to get benefited from the stock price appreciation.
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(3) Promoter Raising Fresh Capital For Project Expansion
It is one of the most common reasons why company promoters selling stake in a given stock. Every project needs some form of capital that needs to be infused from time to time.
However, the demand of fresh capital can increase significantly especially when a company has expanded aggressively. In such a scenario, stake sale or equity dilution is often the preferred & low-cost option.
Promoters might go for stake sale to raise fresh capital for the growth of business. This has been commonly found to be true in capital hungry businesses.
Some of those capital hungry businesses include banking, financial services, & even infrastructure businesses. Whenever fresh shares are issued to investors then a corresponding decline in promoter’s shareholding pattern is observed.
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