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Investments glossary

Follow-On Offering


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Quotes of the day:

I\'m in favor of legalizing drugs. According to my values system, if people want to kill themselves, they have every right to do so. Most of the harm that comes from drugs is because they are illegal.

— Milton Friedman

A follow-on offering (FPO) is an issuance of stock shares following a company’s initial public offering (IPO). There are two types of follow-on offerings, diluted and non-diluted. A diluted follow-on offering results in the company issuing new shares, which causes the lowering of a company’s earnings per share (EPS). During a non-diluted follow-on offering, shares coming into the market already existing and the EPS remains unchanged. Companies offering additional shares must register the FPO offering and provide a prospectus to regulators.


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