Secondary Offering Dilution
Secondary Offering Dilution — New share supply pressuring price around offerings.
Definition
Secondary Offering Dilution refers to new share supply pressuring price around offerings. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
Equity risk premia compress or expand with earnings paths and factor regimes. When new share supply pressuring price around offerings shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what secondary offering dilution is saying. If new share supply pressuring price around offerings moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Separate index beta from residual; know the sector and factor loadings of the claim. Prefer a short written null hypothesis for Secondary Offering Dilution: what would falsify the current reading in the next window?