What would be the benefit of selling shares

[bluecollar2]

At a price below value?

My mother received a notice asking for her approval to do so from one of the companies in her investment portfolio.

Not a sophisticated investor here...

[happyaccident]

1. Don't know anything about money

But didn't the gop get rid of the fiduciary rule, which required investors to only do trades that help their clients? I don't think they have to anymore.

[A HERETIC I AM]

2. What do you mean...

By “a price below value”?

Do you mean below what the shares are trading at or below the price she bought them at?

In order to answer your question properly, I think a little more context is needed.

What did the rest of the letter say?

What kind of account is this? It is possible that a sale at a loss would be used to offset gains for tax purposes.

[bluecollar2]

3. I'll try and get some more details

And post them this afternoon.

Thanks in advance.

[bluecollar2]

4. A little clearer

Ares Capital Corporation proposes to sell or otherwise issue shares of it's common stock at a price below its then-current net asset value.

[A HERETIC I AM]

5. Without reading the document, my first thought is it's just ...

A sale of more shares to raise capital

According to their website, they are also doing a bond offering;

http://www.arescapitalcorp-ir.com/file/Index?KeyFile=398213885

They are restructuring debt, it looks like.

One reason an offer for stock below “NAV” would or could be made is to simply make it more attractive to investors.

[bluecollar2]

6. Thankyou

That was my impression also...