What is an At-The-Market Offering?
What is an at-the-market offering, (A.T.M) or “dribble out” offering?
By:U. Smokey
When a publicly traded company is in the need to raise capital they have a few options at their disposal. Of course they can chose the way of debt and interest payments by simply going to a bank and taking out an interest bearing loan. Or they can use a very unique tool that only publicly traded companies have at their disposal, and that is to raise capital by way of the stock market. That is what the market is for after all, for companies to raise capital to continue to develop and grow over time. But this so called “Free Money” doesn’t come without a cost, and that is the cost of dilution and loss of value to the share price of the company which could make the company look less interesting to institutional and retail investors. Not to mention in many cases gives the banks and institutions that sell the company short a cheap and easy way to close out any short positions at max profits. There are a few types of offerings that can be done if a company does need to seek capitol by way of the make, but might I suggest an At-The-Market Offering, and here is why…
