SEO arbitrage
$Intel (INTC.US)$ Institutions acquire new shares at $95. If the market price jumps directly to $110, they naturally profit. However, underwriters and large capital players typically do not allow prices to rise chaotically. Instead, they manage risk within a controlled range through:
* Hedging
* Options strategies
* ETF adjustments
* Short selling / spot buying
* Staged position building
Consequently, stock prices often feel "stuck" or unable to break out in the short term following the completion of a secondary offering.
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