01304nas a2200157   4500008004100000245010400041210006900145260000900214300001000223490000600233520072500239653001200964100002000976700001600996856013401012       2000                        eng d00aInformation Conveyed by Seasoned Security Offerings: Evidence from Components of the Bid-Ask Spread0 aInformation Conveyed by Seasoned Security Offerings Evidence fro  c2000  a83-990 v93 aWe examine the relationship between the degree of informational asymmetry surrounding a firm and the equity market's reaction to a firm's announcement to sell seasoned securities. We use the adverse-selection component of the bid”ask spread as a proxy for the informational asymmetry of a firm. For equity offers, we find that the greater the change in information asymmetry at announcement, the greater the decline in wealth. In addition, the largest decline in wealth for seasoned equity announcements is observed for firms with the largest level of pre-event adverse-selection components. For debt offers, the wealth decline is only significant for firms with the largest pre-event levels of asymmetric information.10aFinance1 aBrooks, Raymond1 aPatel, Ajay  uhttps://dev.business.oregonstate.edu/biblio/information-conveyed-seasoned-security-offerings-evidence-components-bid-ask-spread-0