secondary offering
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Related to secondary offering: Primary offering
Secondary Offering
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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
secondary offering
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Secondary offering.
The most common form of secondary offering occurs when an investor, usually a corporation, but sometimes an individual, sells a large block of stock or other securities it has been holding in its portfolio to the public.
In a sale of this kind, all the profits go to the seller rather than the company that issued the securities in the first place. The seller usually pays all the commissions.
Secondary offerings can also originate with the issuing companies themselves. In these cases, a company issues additional shares of its stock, over and above those sold in its initial public offering (IPO), or it reissues shares that were issued and have been bought up by the company over time. Reissued shares are known as Treasury stock.
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