CFA CFA Level 1 “lumpiness” of security issuance (?.?)

Equity

“lumpiness” of security issuance (?.?)

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    • Avatar of Zee TanZee Tan
      Keymaster
        • CFA Charterholder
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        A company issues new shares and buys back shares not as an ongoing and continuous process, but rather in discrete events, hence described here as “lumpy”.

        Discrete security issuance and buybacks result in step-changes (rather than continuous, smooth changes) in the equity structure and short-term WACC deviations.

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