That aside, the timing of the initialtransaction was pretty shrewd with investor turning bullish the day after DHI traded at its lowest point of this year so far.
A123 said that during a ten trading day period five months following the initial closing date of the transaction and during another ten day period six months following the close, it has the right to require the investors to buy in each such period up to an additional 6, 250, 000 shares for an aggregate of up to 12.5 million additional shares.
The Coase Theorem essentially states that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property rights.