Corporate Share Selling Driven by Index Fund Demand

Reported about 1 month ago

A recent study highlights that corporations have been the largest sellers of shares to index funds, significantly outpacing other market players. This trend contradicts the narrative that firms are mainly buying back shares, showing that many companies instead capitalize on demand from passive investors by issuing new shares. The findings demonstrate how index fund investments affect corporate financing strategies, allowing companies to adjust their capital structures and take advantage of market opportunities.

Source: YAHOO

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