Providing an exhaustive review of the impact of cash holdings on the value of a publicly traded company, this text considers the implications of stock offerings for firms with varying prospects for success and differing needs for new cash infusions. Existing financial theory describes the demand for cash (liquidity) by a typical company and the wealth-effects of the accumulation of cash or liquid resources on firm value. Prior studies establish that firm value (stock price) is first enhanced and later reduced as the firm acquires liquid resources. These findings are intuitive. A smaller or growing firm that is "strapped-for-cash" sees its prospects and value increase by an amount greater than a new inflow of cash. Ample and profitable avenues exist to invest these new funds; stock value increases. The established firm with more limited prospects observes the reverse. Investors fear the waste of new funds by an "entrenched" management and firm value increases by an amount less than the new inflow of cash; stock value declines. However, no prior study simultaneously considers, using the tools employed in this text, these countervailing forces of stockholder wealth-enhance and wealth-reduction. Private equity placement announcements - private issues sold primarily to venture capitalists and institutional investors - provide an opportunity to study changes in firm value, at the time of an announced change in liquidity, independent of issues that may obscure the precise source of changes in firm value in other liquidity-enhancing events. In many corporate announcements of new cash infusions, such as in "public" stock sales, a clear statistical argument cannot be made for the reactions of the stock market to the announcements. A "cleaner" statistical laboratory is developed with this new study. Detail is provided on the firms studied in this text and on the stock market's reactions to each announcement of a significant new cash inflow. Tabular and graphic depictions of the presented findings underscore the relevance of this text for the financial economist, corporate manager, investment banker and stock market investor."