add-on financing(redirected from Add On Financing)
Any issue of stock by a publicly-traded company other than the IPO. A company makes a public offering through underwriters, who have the responsibility to place the offering with individual and institutional investors. Companies make add-on financing issues in order to raise financing for expanded operations or because they have become cash poor and need to finance their current operations. The offerings themselves give investors a portion of ownership in the company issuing them. Add-on financing is also called a follow-on offering. See also: All Holders Rule, Anti-dilution provision.
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See follow-on offering.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.