DEFINITION of Impact Day
BREAKING DOWN Impact Day
Because impact days increase the total number of outstanding shares, it leads to dilution, reducing existing shareholders’ share of the company, and earnings per share – which has an impact on the stock’s price.
Secondary offerings are used to raise additional capital, whether to expand the business or 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.