• There was a steady flowback of shares across the Atlantic as US investors withdrew from the UK tobacco sector.
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For example, country A's tech index fund only deals with tech stocks from country A. Country A's leading tech company, ABC, decides to merge with country B's leading company, DEF, and incorporates the new company, ABEF, in country B.
The net effect of this action would force the previously mentioned index fund to sell all of its shares in ABC, because the company will no longer fit into the fund's investment thesis. In such cases, companies should examine flowback that occurs as a result of corporate actions in order to prevent share prices from tumbling.
Flowback of ADRs occurs when arbitrageurs take advantage of domestic and foreign market mispricings.
відплив цінних паперів (на вітчизняні ринки після першого розміщення за рубежем; ознака недовіри з боку іноземних інвесторів)
- water flowback