Secondary Offering

Posted on February 11, 2011 by Thomas DeGrace

Secondary Offering is a selling of a large block of shares issued by companies to raise additional money.  Some of the shares that make up the offering could be from insiders selling and some may be new shares issues thus increasing the outstanding shares and possibly diluting the shares.

Understand How Secondary Offering Works

Usually a stock price will drop when a large amount of additional shares are issued.  So in the short-term, this may be a time to stay away from the stock.

Related posts:

  1. Float
  2. Initial Public Offering
  3. Shares Outstanding
  4. Short Sale
  5. Margin Call

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