PIPE

Private Investment in Public Equity: a negotiated private placement by a public company, often involving common stock, pre-funded warrants, warrants, preferred stock, or convertible securities.

Calculation framework

Initial common-equivalent shares = cash invested ÷ purchase price, adjusted for the instruments actually soldEffective discount or premium = (market reference − purchase price) ÷ market reference

What traders should verify

Verify signing versus closing, instrument mix, resale-registration deadlines, lockups, resets, blockers, exchange caps, fees, and closing shares outstanding.

Do not conflate

A later resale registration covers liquidity for previously issued or issuable securities; it should not be counted as a second financing issuance.

Primary source

Related glossary terms

Related lessons

Why was the filing made? Start with primary versus resale
Private Investment in Public Equity (PIPE), At-the-Market Offering (ATM), and Equity Line
Final lesson: calculate one company from beginning to end