Why Intel Is Wise to Issue $20 Billion in Stock Right Now
A move that hurts shareholders in the short term could actually benefit investors in the end.
Overview
Intel (NASDAQ: INTC) just increased its share offering. The company, which had recently announced a plan to issue $15 billion in additional shares, has upped this offering to $20 billion.
Not surprisingly, the chip stock's price pulled back following the initial announcement. However, the shareholder dilution that comes with this move could benefit long-term shareholders. Here's why.
Image source: Intel.
Details
Source
Originally published at www.fool.com.
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