Follow-on offering

A follow-on offering is a later sale of new or existing shares by a company that is already publicly traded. It is usually priced at a discount to the recent market price, which is the discount Rule 105 stops a short seller from capturing. A secondary offering is one in which existing holders sell.

manipulation techniques · updated 2026-09-20

Where does follow-on offering come up?

This term is used in the following manipulation techniques, each explained in full on its own page.

• Rule 105 offering shorts — Rule 105 offering shorts are short sales of a stock in the restricted period before a follow-on offering is priced, followed by a purchase of that stock in the offering, which Regulation M Rule 105 prohibits whatever the trader intended.

Enforcement actions involving these techniques

See also

• Firm commitment offering — In a firm commitment offering the underwriters agree to buy the whole issue from the seller and resell it, taking the risk that it…
• Rule 105 — Rule 105 of Regulation M, 17 C.F.R. § 242.105, makes it unlawful to sell a stock short in a defined restricted period before a reg…

Terms that refer here

Firm commitment offering

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