Seasoned Equity Offering ~upd~

The final offering price is set—typically at a slight discount to the current market price—and shares are allocated to buyers.

$$R = P \times N$$

Imagine a company getting permission to sell new shares anytime in the next 3 years, like a “financial trapdoor.” That’s a (Rule 415). seasoned equity offering

Seasoned Equity Offering (SEO) │ ┌────────────────────────┴────────────────────────┐ ▼ ▼ Dilutive (Dilutive SEO) Non-Dilutive (Secondary SEO) • Company issues brand-new shares. • Insiders sell existing shares. • Cash goes to the corporate balance sheet. • Cash goes directly to the sellers. • Earnings Per Share (EPS) decreases. • Total outstanding shares stay flat. 1. Dilutive SEOs (Primary Offerings) The final offering price is set—typically at a

The speed at which a company needs capital dictates the regulatory mechanism they use to bring shares to market. Shelf Registration (SEC Rule 415) • Insiders sell existing shares