BB's Stock Haven

[EDWARD STEVENSON]

A common stock offering is when a company issues new common stock. For instance, Company ABC had 100 shares issued and outstanding but is offering 10 additional shares. Therefore, after the offering there will be 110 shares O/S. The offering price is reflective of the value of the newly issued shares (always at a discount to the market price). Common stock offerings is the basic way a company raises capital.