Just before 3pm today, volume in Bank of America picked up as shares fell below $15 – the price of its secondary offering earlier in the month. This is not a good sign for shareholders who had purchased the new shares at the secondary pricing since their investment has turned negative now. Additionally, the bank’s shares are now down 5 percent since the pricing announcement on December 3.
Separately, Citigroup is seeing HUGE volume on the heels of its own secondary stock offering this morning. With half an hour of trading to go, Citi has traded nearly 3.5 BILLION (yes, with a “b”) shares today. Putting that in perspective, “only” 1.2 billion shares have changed hands overall on the floor of the New York Stock Exchange today. Furthermore, nearly half of the volume on the NYSE’s floor is a direct result of floor trading in Citigroup.
Average volume for Citigroup on a normal day: 320 MILLION shares – but that alone was easily surpassed in pre-market trading today, when over 800 million shares of Citi were already traded even BEFORE the Opening Bell rang.
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