# Shares to be released from escrow: How does this affect share prices?



## flyingpig (21 November 2007)

Question as above. Thanks in advance.


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## doctorj (21 November 2007)

*Re: Shares to be released from escrow. How does this affect share prices?*

It's much like the director selling. It can go either way.

On one hand, when shares come out of escrow you have an increase in (potential) supply.  Going back to yr 10 economics, ceteris paribus, an increase in supply normally results in a fall in price.

On the other hand, shares coming out of escrow brings M&A activity into play which can increase the price.


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## stoxclimber (21 November 2007)

*Re: Shares to be released from escrow. How does this affect share prices?*

Also increases liquidity which increases price.


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