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Companies are issuing more stock than at top of the tech bubble. Is a crash on the way?

Record stock issuance is not necessarily bearish if it is accompanied by high levels of buybacks or M&A activity

Some of those who believe a bubble is forming are relying on an argument that is so obviously misleading
Some of those who believe a bubble is forming are relying on an argument that is so obviously misleading Photo: Getty Images

Stock-market bulls are needlessly worrying about the recent record pace of new stock issuance. In fact, when viewed properly, the current pace of stock issuance is actually neutral for the stock market — if not slightly bullish.

In other words, what appears to some to be a sign of a bubble about to burst may actually mean something closer to its opposite.

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