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 dilute existing shareholders' ownership—your slice of the pie gets smaller when more slices are created. The company gets fresh capital, but the stock price often dips temporarily as investors worry about that dilution. For example, if TechCorp issued 10 million new shares at $50 each, existing shareholders would own a smaller percentage of the company, though TechCorp would have $500 million in new cash.