Legg Mason Inc. said Wednesday it priced an offering of a special class of stock the investment manager is selling to raise $1 billion. The company expects the sale to close Monday.

Among the stock activity stories for Tuesday, May 6, from AP Financial News:

Shares of Legg Mason Inc. fell Tuesday after the investment manager said it lost more than $250 million in the fiscal fourth quarter as it set aside millions for possible bailouts of funds rattled by shaky capital markets.

Among the earnings stories for Tuesday, May 6, from AP Financial News:

Legg Mason Inc. plans to raise $1 billion by selling a special kind of stock to raise enough cash to continue supporting company-run funds struggling amid turbulent capital markets, the investment manager said Tuesday.

Legg Mason Inc. lost more than $250 million in the fiscal fourth quarter as the investment manager set money aside for possible bailouts of funds suffering from turbulent markets, the company said Tuesday.

Cash is starting to flow out of money market accounts as interest rates on those accounts have tumbled along with the Federal Reserve Board's recent spate of cuts.

Legg Mason Inc. said its board approved a quarterly cash dividend of 24 cents.

A major Yahoo shareholder, Legg Mason, is ready to back Yahoo's effort to stay independent if Microsoft lowers its buyout offer, the Wall Street Journal said, citing an interview with portfolio manager Bill Miller.

U.S. money manager Legg Mason said Friday it is exploring solutions to provide liquidity to holders of auction-rate preferred securities issued by seven closed-end funds of its affiliates.

A fresh wave of economic worry swept across Wall Street, aggravated by a spike in wholesale prices, dismaying corporate results, and oil trading above $100 a barrel.

Large-cap growth stocks, especially in the technology sector, are where investors ought to be putting their money right now, according to Jason Trennert. But the chief investment strategist and managing partner at Strategas Research Partners also holds financials -- very selectively.

Investors in a $5 billion cash management fund run by General Electric have become the latest victims of the subprime mortgage meltdown. A  short-term cash management fund, which attempts to keep the value of each share at one dollar, is instead offering investors just 96 cents on the dollar.

Stocks closed lower as credit worries about Citigroup and other big financial institutions sparked a broad selloff.