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Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
A stock issue that follows an initial public stock offering from a firm. The follow-on offering can consist of primary and/or secondary shares. Companies will sometimes authorize additional shares that are issued at a higher price following a successful initial public offering. Also called add-on financing, piggyback.
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.