Why AcelRx Pharmaceuticals Stock Is Sinking Today

Why AcelRx Pharmaceuticals Stock Is Sinking Today
Keith Speights, The Motley Fool
·2 min read

Shares of AcelRx Pharmaceuticals (NASDAQ: ACRX) were trading down by 16% as of 11:40 a.m. EST on Wednesday after the company announced the pricing of a public stock offering. Secondary stock offerings cause stocks to fall for one simple reason: They dilute the value of existing shares. In addition, in AcelRx's case, the biotech company intends to sell its new shares at a 19% discount to its closing price on Tuesday.