Secondary Offering
Strictly, a sale of EXISTING shares by current holders (insiders, early investors) -- no new shares are created and there is no dilution; the company receives none of the proceeds. Colloquially the term gets used for any post-IPO share sale, but the dilutive raise-new-cash transaction is properly a FOLLOW-ON (primary) offering: the company issues NEW shares, each existing share represents a smaller slice, and the cash funds growth, acquisitions, or debt paydown. When you read a headline, check which one it is -- who gets the money tells you.
Lessons that use this term
Related terms
Accounts Payable · Adjusted EBITDA · Adjusted EBITDA Ex-SBC · ADR · ARPU · Average Length Of Stay
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