Why Shares of Albemarle Slumped This Week

Shares in lithium producer Albemarle (ALB 2.57%) were down by 14.1% in the week to Friday morning. The move comes in a week when Albemarle announced an offering of $1.75 billion in depositary shares on Monday and then increased the offering to $2 billion on Wednesday. The issuance puts the stock price under pressure as investors start pricing in a dilution of equity in the future when the shares are converted into common stock.Why Albemarle made the offeringAccording to the press release, Albemarle intends ...