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Secondary offering

• The sale to the public of a large block of common shares held by the founding owners or a controlling company.

• A sale of securities in which one or more major stockholders in a company sell all or a large portion of their holdings; the underwriting proceeds are paid to the stockholders rather than to the corporation. Typically such an offering occurs when the founder of a business (and perhaps some of the original financial backers) determine that there is more to be gained by going public than by staying private. The offering does not increase the number of shares of stock outstanding.

 
 Embedded terms in definition
 Common shares
Corporation
Going public
Held
Sale
Securities
Sell
Shares
Stock
Underwriting
 
 Related Terms
 Competitive offering
Dual syndicate equity offering
Initial public offering
Negotiated offering
Offering circular
Offering memorandum
Primary offering
Prompt offering prospectus pop system
Public offering
Rights offering
Secondary issue
Secondary market
Shelf offering
Underwritten offering

<< Secondary market Section 1650 >>

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