What happened Shares of the insurance platform SelectQuote (NYSE: SLQT) dropped by more than 11% today after the company announced a proposed secondary offering of common stock. So what SelectQuote is a platform that assists consumers in purchasing senior health, life, auto, and home insurance policies from a curated panel of the nation's leading insurance carriers. The company announced after Monday's market close a secondary public offering of 10.6 million shares of common stock by existing stockholders, including the private equity firm Brookside Equity Partners. SelectQuote's staff gather outside its headquarters. Image source: SelectQuote. While the offering will not change the number of existing shares, it will increase the float, which refers to the amount of shares available to be publicly traded. That in turn creates a bigger supply of shares available. Now what Seeing major stockholders sell shares may spook some investors. After all, the company has largely been in recovery mode from the pandemic. But SelectQuote stock recently hit an all-time high after going public in May of 2020. Additionally, profits are growing, and the company recently raised its guidance for full-year earnings in fiscal year 2021, which are expected to surpass 2020 earnings significantly. Today's dip is likely associated with the short-term volatility that typically comes with a secondary offering, and presents a good opportunity to buy the stock. 10 stocks we like better than SelectQuote, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and SelectQuote, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source