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Secondary Distribution
(redirected from Secondary Distributions)

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Secondary Distribution
The sale of a security that has already been issued. Generally speaking, it refers to the sale of a security by a private investor (usually a corporation) to a member of the general public. It is also called a secondary offering. See also: Secondary market.

secondary distribution
The sale of a block of existing, not newly issued, securities with the proceeds going to the present holders rather than to the issuing firm. An especially large secondary distribution may put pressure on the security's price until the additional shares or bonds have been assimilated in the market. Also called secondary offering. Compare primary distribution. See also registered secondary distribution, special offering, spot secondary distribution.


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The Justice Department has designated NCMEC to coordinate these secondary distributions.
It is organized into 19 chapters, dealing with such topics as exempt securities, secondary distributions, insider trading, shareholder voting, and corporate takeovers.
The most compelling justification for issuing exchangeable debt is non-tax-related and has previously been ignored -- namely, the underwriting fees and valuation effects associated with exchangeable debentures are substantially less than those associated with secondary distributions where the investor is left holding the convert's stock.
 
 
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