Green Giant Inc (GGE)

Green Giant Inc (GGE) stock dropped by 40.13% due to the announcement of a proposed public offering, which raised concerns and uncertainty among investors. The lack of specific details about the offering further fueled investor apprehension, leading to a substantial sell-off of the stock. Here are the key reasons for the stock's decline:

• Public Offering Announcement: Green Giant Inc's decision to conduct a public offering raised concerns among investors. Public offerings often involve the issuance of additional shares, which can dilute the ownership stake of existing shareholders. Investors may fear that the offering could lead to share price depreciation.
• Lack of Details: The company's announcement lacked specific details about the offering, such as the pricing of the shares and the number of shares to be offered. This lack of transparency can create uncertainty and unease among investors, leading to a sell-off of existing shares.
• Investor Reaction: When a company announces a public offering, investors typically react by selling their shares, especially if they anticipate potential dilution of their holdings or if they are uncertain about the offering's terms. This selling pressure can drive down the stock price.
• Market Sentiment: Market sentiment plays a crucial role in stock price movements. The announcement of a public offering can trigger negative sentiment if investors interpret it as a sign of financial need or if they believe it may be priced at a discount.