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Where the shares being sold during the IPO are coming from. How do announcement of dividends...

Where the shares being sold during the IPO are coming from.

How do announcement of dividends and repurchases signal information to market participants

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The shares being sold during the IPO are coming from - Primary Market

A primary market issues new securities on an exchange for companies, governments and other groups to obtain financing through debt-based or equity-based securities

Share repurchases have become a popular means of paying out cash to shareholders, and one of their often cited motives is their signaling of undervaluation of repurchasing firms. Dividends are often viewed as signaling future earnings. However, in theory, signaling of current undervaluation should be closely related to signaling of future cash flows.

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