What happened?MongoDB shares (NASDAQ:MDB), a database software company, are down 4.4% at midday Wednesday due to the company's decision not to sell new stock in order raise funds.What are you waiting for?MongoDB, like other companies of late is capitalizing on the stock's recent gains and is issuing new shares at a time when prices are rising. After Tuesday's close, the company stated that it intended to sell 2.3 millions shares of its common stock. However, this number was revised to 2.5 million on Tuesday evening. New buyers will receive a discount at the offering price of $365 per shares, which was lower than Tuesday's closing value of $383.71. There were 60.9 million shares remaining of MongoDB common stock as of the end JanuaryWhat now?In this current climate, secondary stock offerings are not unusual. Stocks of many companies have surged in anticipation of a strong economic recovery. Even though the fiscal results from recent years are not impressive, they have seen their stock prices soar. Opportunity knocks only once, as the old saying goes. Companies that don't cash-in now may not be able again, at least not for the long-term.However, it is fair to question if these dilutive fundraising efforts are really necessary. MongoDB will use the profits from this sale to fund "general corporate purposes," which will ultimately lead to business growth. The company was on track to increase its top line by 33% this fiscal year and grow it by another 30% next fiscal. Investors are protesting the deal by selling existing stock, despite not having any clear reason to do so (at a discount of the current market price).MongoDB's story behind its database software has been a positive one for everyone involved. It buoys the stock after any significant drops like today.
