Wall crossing

Wall crossing is a technique used by publicly traded companies to raise capital, typically from institutional investors in two stages. In a wall crossing, a publicly listed company tries to raise capital through large stock sales by having institutional investors pre-arranged to buy substantial blocks of newly issued stock ahead of a public announcement of the offering as part of a confidential offering.[1] In order to participate in what is essentially a private placement, investors typically sign a non-disclosure agreement that allows them to "cross the wall", thus becoming insiders and gaining access to material non-public information.[2][3]

References

  1. ↑ "Over the Wall and Through the Woods: A Look at Wall-crossed Deals - The Global Treasurer". The Global Treasurer. 2009-06-30. Retrieved 2018-08-18.
  2. ↑ Cowan, Lynn (2008-12-29). "'Wall Crossings' Provide Fund-Raising Edge". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-08-18.
  3. ↑ Levine, Matt (June 3, 2015). "Insider Traders Made Some Easy Money on Stock Offerings". Bloomberg.
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