1 Once upon a time, when you bought broccoli you bought the whole vegetable, stems and crowns. Then it became customary for grocery store produce departments to separate the crowns from the stems and to sell the crowns at a premium. 2  Iâm not a fan of this practice, because I like both parts of the broccoli plant.
A company's first issue of common stock to the public is called an Initial Public Offering. Afterwards, a corporation may issue new equity at any time in order to finance its growth. When new common shares are offered to existing shareholders first, this is called a rights offering.
If you would have invested $1,000 into Facebook right after its initial public offering, you would have 26 shares of its common stock. If you would have invested an additional $992.88 when Facebook was trading at $17.73 per share, you would currently have 82 shares of its common stock. If You Would Have Invested in Facebook After Its IPO