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Small shareholders can be left worse off when companies raise funds. Here's how to protect them

  • Written by Kevin Davis, Emeritus Professor of Finance, The University of Melbourne
Small shareholders can be left worse off when companies raise funds. Here's how to protect themTK Kurikawa/Shutterstock

After the Bank of Queensland agreed to buy ME Bank from Australia’s industry superannuation funds in February, it needed to raise A$1.35 billion quickly.

The way it did it depleted the wealth of quite a few retail shareholders.

Its shares had been trading for $8.41 each. It offered big institutions extra shares for...

Read more: Small shareholders can be left worse off when companies raise funds. Here's how to protect them

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