Core terms
ATM
An at-the-market program in which a sales agent may sell newly issued shares into the market from time to time at varying market prices, subject to the agreement and registration capacity.
Calculation framework
Estimated program remaining = authorized gross amount − gross sales disclosed under the agreementScenario shares = assumed future gross sales ÷ assumed average sale price; net cash also subtracts commission and feesWhat traders should verify
Link the sales agreement to its shelf and 424B5, test Baby Shelf and exchange limits, and reconcile quarterly or 8-K sale disclosures.
Do not conflate
An ATM agreement can exist without being active, available, or used; capacity is not actual selling pressure.
Primary source
Primary sourceRelated glossary terms
Related lessons
- Where do Form S-1, Form S-3, and Shelf fit on the timeline?
- Private Investment in Public Equity (PIPE), At-the-Market Offering (ATM), and Equity Line
- How much stock can a company actually sell now? The five gates of usable capacity
- Final lesson: calculate one company from beginning to end
- What is a 424B5? Reading the prospectus supplement behind a shelf takedown
- The baby shelf rule: how General Instruction I.B.6 caps small-company shelf sales