Corporate Finance question

For those of you guys who really understand corporate finance (or at least it the question is a tough one for me) In Myers’ pecking order theory, he generally assumes that shareholders are passive. But when he assumes that shareholders are active financing decision does not matter because shareholders can rebalance their portfolios. Now, can someone explain to me in simple words why is that the case ? The proof looks too mathematical and I really don’t understand the intuition behind the active shareholders-rebalancing issue. Thanx in advance