Anavex Life Sciences Corp (AVXL)

[skitahoe]

It doesn't work like that. If Institutions want lots of shares, they go to the MM's. If the MM's can't gather and deliver shares in a timely manner, they'll see if the company would consider doing an offering. Otherwise, if they want the share badly enough, they'll let the MM's drive the share price up with large market orders.

It's rare for the Institutions to want shares enough to drive up the price. It's far more likely they'll tell the MM's what they want and give them all the time they need to get the shares at the lowest possible price.

A company that's either buying out, or taking a major equity position in another company may well pay up to double the current stock price. Institutional investors aren't trying to be a partner or own the entire company, they want it as an investment and want to get it as cheaply as possible. Most offerings are done at slightly below the current share price as the money is going directly to the company and the MM's attract the company with the money they're being offered, and the fact that the stGaryock is going into Institutions who they believe are stable investors.

Gary