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 and sometimes signal the company needs capital. The stock price often dips temporarily when one is announced. For example, if TechCorp issued 10 million new shares at $50 each, existing shareholders would own a smaller slice of the company, though TechCorp would have $500 million in fresh cash to spend.