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Discover After $500 Million Through Stock Sale

Since there weren’t any huge financial stories today (and let’s be honest - that’s probably a good thing considering recent trends), here’s what might at least be classified as an interesting matter instead: Discover Financial Services intends to raise $500 million by selling new shares.

Specifics were a little hard to come by.  Alistair Barr writes, “Discover said the $500 million from the common-stock sale will be used for ‘general corporate purposes.’  That could include pumping capital into Discover Bank, a unit that offers online savings and money-market accounts and certificates of deposit.”

Or Discover might be attempting to buy back stock sold to the Treasury Department, which would be nice for the U.S. of A. as a whole.

But anyway, although Discover’s stock went up 3.55 percent today, it’s now down by 7.62 percent in after hours trading, so it would seem the company’s investors aren’t thrilled with the idea.

One last note: no timeframe for the stock sale has been set (or at least, in keeping with lack of public info, announced).


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