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Explained in plain English

Why do shares drop after a sale?

When a company issues new shares, like Wistron did, it increases the total number of shares available in the market. This 'dilutes' the value of existing shares, as each share now represents a smaller slice of the company. Investors often react by selling, which can push the share price down.

Stories that explain this

Wistron shares fall 6% after $1.47 billion stock sale for raw materials

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