16/07/2021
Term of the day
Secondary Offering
A secondary offering is the sale of new or closely held shares by a company that has already made an initial public offering (IPO).
There are two types of secondary offerings. A Non-Dilutive Secondary and Dilutive Secondary.
A non-dilutive secondary offering is a sale of securities in which one or more major shareholders in a company sell all or a large portion of their holdings. The proceeds from this sale are paid to the shareholders that sell their shares.
A dilutive secondary offering involves creating new shares and offering them for public sale.
Secondary offerings are sometimes referred to as follow-on offerings or follow-on public offers (FPOs).
i hope you have learned something today.
A secondary offering is sale of new or closely held shares of a company that has already made an initial public offering (IPO).