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Module III· ECM — Follow-on, ABB, Rights IssueIntermediate
Question

How is price set in an ABB?

Answer

ABB price is set from investor orders, current share price, market volatility, deal size, liquidity, discount needed, and seller / issuer objectives. Because execution is fast, investors expect a discount. Final price balances clearing the book, quality of demand, and minimizing unnecessary discount to market.

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