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Offerings
ATM Offering
Definition
At-The-Market offering. A mechanism allowing a company to sell new shares directly into the market at prevailing prices over time.
Why It Matters
ATM offerings cause gradual dilution. The company can sell shares whenever the price is favorable, which creates a ceiling on the stock. Always check if a company has an active ATM before entering.
Real Example
A biotech company files an S-3 with a $50M ATM facility. Over the next 3 months, they sell shares gradually into rallies. Each rally gets sold into, creating a pattern where the stock can't break through resistance.