Impact Day


DEFINITION of 'Impact Day'

The date on which a corporation makes a secondary offering of its shares available for sale to the public. Such a secondary offering increases the total number of outstanding shares, therefore, existing shareholders will own a smaller percentage of the company and earnings per share will decline. As a result of these changes, the stock's price may decline on, or shortly after, impact day.


The purpose of a secondary offering, also called an add-on, could be to raise capital for a new project or business expansion or to increase working capital. As with an initial public offering, an underwriter will assist the company in determining the number of shares to offer, establishing a share price and selecting the right date for impact day.

  1. Add-On

    Additional shares put on the market by a company that has already ...
  2. Spinning

    The act by a brokerage firm or underwriter of offering shares ...
  3. Subsequent Offering

    An offering of additional shares after the issuing company has ...
  4. Flotation Cost

    The costs incurred by a publicly traded company when it issues ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  6. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
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