Secondary Offering

A secondary offering is when a company sells additional shares of stock to the public after its initial public offering (IPO). Instead of the company raising money for the first time, it's raising more cash by issuing new shares. You'll see these announced in financial news, and they matter because they can dilute existing shareholders' ownership—your slice of the pie gets smaller when more slices are created. The company uses the money for things like paying down debt or funding expansion. For example, if TechCorp issues 10 million new shares, existing shareholders own a smaller percentage of the company, though the total value might grow if the money is invested wisely.