Equity Market Timing

Definition: Equity Market Timing is the practice of issuing shares (equity) when its stock prices are high and repurchasing them (buying them back) when they are low with the intention of exploiting temporary fluctuations in the cost of equity relative to the cost of other forms of capital. The concept aims to minimize the cost of capital while enhancing shareholder value.

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More on financial markets: Asymmetric Information, Call Option, Moral Hazard.

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