Rows 3 and 4 of table 3 present summary statistics for the change in
capitalization relative to the dollar amount of the offering and relative to the
market value of common stock, respectively. The median change in capitaliza-
tion relative to the amount of the offering is 0.594 for common stock offerings,
which is substantially higher than for other types of security offerings. On
average, a greater proportion of the proceeds of common stock financing
represents an addition to the firm’s total assets. As a fraction of the market
value of common stock, the median change in capitalization ranges from 0.048
for common stock offerings to 0.005 for preferred stock offerings.