Why Fisker Shares Jumped Today
It's not uncommon for a company's share price to drop when it announces a capital raise. But that's not how Fisker (NYSE: FSR) shares are reacting Monday. The electric vehicle (EV) start-up jumped by as much as 5.2% Monday morning and was trading higher by 4.5% as of 11:35 a.m. ET.
Early Monday, Fisker announced it would be raising at least $300 million by issuing convertible notes to an institutional investor at a discount. At first glance, that looks like it would be a negative development for existing shareholders, but there's much more to unpack here.
Source Fool.com
