I have asked a question What shares are actually being sold in “ATM” format release? - From the answer, I understand that a company could be able to sell new shares to gain more money for its operation.

But when will the public be notified?

Let's still take the $HMNY company for instance. It's been jumping lower for days. Does that mean the company has already (secretly) selling new shares ATM? Is that legal? How does the ATM offering actually work?


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    In principle, issuing and selling new shares shouldn't affect the price of the existing shares. It dilutes the ownership of the existing shares, but the new money increases the value of the company by the same amount, so the net effect should be zero. – Mike Scott Jun 7 '18 at 8:28
  • For traditional secondaries, share price sometimes reacts, depending on the perception of the terms of the secondary. – Bob Baerker Jun 7 '18 at 14:04
  • 7/24/18: Helios and Matheson Analytics Inc. announces 1-for-250 reverse stock split. RUT ROH... – Bob Baerker Jul 25 '18 at 14:29

But when will the public be notified?


A company can only create shares like that with the permission of the shareholders and under a plan the board has approoved. Those information is public when made.

From then on, the management will follow this and just sell on the market as it sees fit.

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    Well, the shareholder decsiions are public. Shareholders meet once per year. But if the shareholders agree that the board/management can sell another 1 million shares for a minimum price X, then this decision allows management to sell them when they want. – TomTom Jun 7 '18 at 9:14
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    @AGamePlayer For new shares, that is correct, but note that “telling everyone” just means putting it in the minutes of the AGM. But if the company holds existing shares in its treasury, it can sell them without getting anyone’s permission or telling anyone. – Mike Scott Jun 7 '18 at 9:16
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    Annual General Meeting. Might be called a shareholders’ meeting so something similar in the US. – Mike Scott Jun 7 '18 at 9:24
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    @AGamePlayer A company that holds its own shares in its treasury is a shareholder like any other, and can sell those shares, just as if they were shares in a different company. everymanlegal.co.uk/wpcms/wp-content/uploads/… – Mike Scott Jun 7 '18 at 9:26
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    @AGamePlayer If you want to know all about treasury shares, that’s a new question, and should be asked as such. – Mike Scott Jun 7 '18 at 9:31

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