All seasoned issues of straight common equity made by US industrial corporations listed on the NYSE, Amex, or Nasdaq for which complete information is available are included in the sample unless they are mainly secondary offerings by existing shareholders or are offered by a company that had another issue already in the sample.
Altinkilic and Hansen (2003) find underpricing of approximately 3% for seasoned issues.
Keywords: Adverse-selection component; Information asymmetry; Seasoned issues
When examining seasoned issues, the largest declines in equity value should occur for firms with the largest levels of asymmetric information prior to the announcement.
Pettway and Radcliffe (1985) find that utility firms have similar but smaller reactions to seasoned issues compared to manufacturing firms.
Issue is the dollar value of the seasoned issue stated in millions.
On July 2, the Committee on Corporate Reporting sent a letter to the SEC, responding to the Commission's Notice of Proposed Rulemaking, "The Regulation of Securities Offerings." The letter states, in part, "While we are supportive of the Commission's overall objective of providing increased flexibility in the registration process, we believe that the universal shelf registration process currently available to large seasoned issues
is working very well.
Even the liquidity in the market for seasoned issues
The evidence regarding seasoned issues is less conclusive; however, the option models appear more accurate.
One comprises 142 new issues sold during the years 1976 through 1980; the other consists of 322 seasoned issues. The seasoned issues are on companies in the new-issue sample having at least two seasoned preferred stocks outstanding on the issue date of the new issue prices with OPT-derived models, at least two seasoned preferred stocks must be outstanding for each issuer.
For seasoned issues, the estimation sample of 106 preferred stocks comprises two securities for each of the 53 stocks in the new-issue validation sample.
The slower prepayments of the moderately seasoned issues
are of special significance because these securities represent the majority of the seasoned pass-throughs that are traded.