Thus, the primary and secondary distributions lines in rural areas caused high line resistance and I2R losses in the line.
They said that distribution transformers are not located at load center on the secondary distribution system.
The documented negative price reactions at the announcement of secondary distributions (Mikkelson and Partch |5~), block sales (Holthausen, Leftwich and Mayers |3~), and equity issues (Asquith and Mullins |1~) are all consistent with this view.
The guarantee of the floor on losses to investors appears to mitigate the information effects of the announcement relative to the information effects of secondary distributions. A second plausible explanation of the smaller price response associated with exchangeable debt issues relative to secondary distributions is that an issuer of exchangeable debt, although well-informed, may, on average, not be as well-informed as the issuers of secondary distributions.(8)
As documented earlier, the price response of the convert firm's stock at issue is negative, but smaller in magnitude than the price response associated with secondary distributions, the likely alternative method of disposal.
The price response of the convert firm is less pronounced than the negative price response associated with secondary distributions or block sales.
12 It is important to consider the difference in the size of the secondary distributions studied by Mikkelson and Partch |5~ (mean dollar value of $31.6 million) and the exchangeable debt offerings studied here (mean dollar value of $96.4 million, Exhibit 3).
It is organized into 19 chapters, dealing with such topics as exempt securities, secondary distributions
, insider trading, shareholder voting, and corporate takeovers.