Sometimes, the company needs to raise more capital in order to finance operations, pay down debt, make an acquisition, or spend on other needs. With this type of offering, a company actually issues brand new shares, increasing its existing share count. For instance, Achillion Pharmaceuticals, Inc. (NASDAQ: ACHN ) announced last week that it would raise $125 million in a stock offering, saying it plans to use the proceeds for research and development on its pipeline or for other purposes. Another example is master limited partnership Golar LNG Partners LP (NASDAQ:GMLP), which has done several offerings in recent months in order to finance asset purchases. When a secondary offering involves the issuance of new shares, the main concern for existing shareholders is dilution. With an increase in shares outstanding, the stock position you own represents less of the overall company, and you'll get a proportionately smaller share of the company's profits going forward.