- That's a big jump from the $4.8 billion sold in March, and the $22.3 billion sold in April.
- The 2020 total is now more than $120 billion, the highest since 2015, according to the report.
- Read more on Business Insider.
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US companies sold stock at the fastest rate ever in May as markets posted a rebound rally
US public companies sold $65.3 billion of new shares in May, the highest on record, Reuters reported, citing Refinitiv data.
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Publicly traded companies in the US sold shares in the fastest clip ever in May, as the market rebounded from the coronavirus-induced meltdown.
US public companies sold $65.3 billion of new shares in May, the highest on record, Reuters reported, citing Refinitiv data. That's a jump from April, when issuance was $22.3 billion, and March, when it dipped to $4.8 billion, the lowest month since December 2018.
It also brings the 2020 total to more than $120 billion, the highest since 2015, according to the report.
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The market meltdown in March foiled companies' ability to issue new shares and raise cash. But, as markets have rebounded, companies are rushing back the S&P 500 index has gained roughly 40% from March lows and is about 10% away from the all-time high it hit in February.
Read more: GOLDMAN SACHS: Buy these 25 beaten-down stocks all poised to jump more than 18% from current levels
Companies such as Southwest Airlines and Carnival Corp , a cruise line operator, issued new shares in May to raise money, according to the report. Others, such as BlackRock and Regeneron Pharmaceuticals , cashed out some of their stock amid the rally, Reuters reported.
Companies are exercising what options they have to raise money as they don't know what lies ahead in uncertain markets.
The new share issuances mirror the US debt market, where companies have raised more than $1 trillion so far this year, according to the report.
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See Also:
- Famed economist David Rosenberg says investors are falling into a classic market trap that's historically preceded a further meltdown and warns 'there's not going to be much of a recovery'
- MORGAN STANLEY: The market's hottest stocks are in danger of being disrupted to a degree not seen since the Great Recession. Here's how to adjust your portfolio for the coming shift.
- 'Embrace the coming crash': A notorious market bear who called the dot-com bust warns big tech stocks are on the verge of succumbing to the economy's downturn
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