Dilution Just Smacked Down These 2 Nasdaq Stocks -- and More Could Follow
The stock market has been on a tear for more than a year now, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) has benefited more than most other market benchmarks. Wednesday was a mixed day in the market, but as of 2:45 p.m. EDT, the Nasdaq managed to inch higher by about a tenth of a percent.
Yet as the stock market continues to rise, companies are increasingly taking advantage of the opportunity to raise capital by selling equity interests in their businesses to a hungry investment community. That was the case in two different hot areas of the market on Wednesday, as both electric vehicle company Li Auto (NASDAQ: LI) and fintech lending platform provider Upstart Holdings (NASDAQ: UPST) found themselves moving lower after announcing capital-raising efforts.
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Source Fool.com