Knowledge

Secondary market offering

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A secondary offering is not dilutive to existing shareholders since no new shares are created. The proceeds from the sale of the securities do not benefit the issuing company in any way. The offered shares are privately held by shareholders of the issuing company, who may be directors or other
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of a large block of a security that has been previously issued to the public. The blocks being offered may have been held by large investors or institutions, and proceeds of the sale go to those holders, not the issuing company. It is also called a secondary distribution.
47:, otherwise known as a subsequent offering, or a dilutive secondary offering. In a follow-on offering, the company itself places new shares onto the market, thus diluting the existing shares. "Secondary market offering" can be understood as an offering on the 40:) who may be looking to diversify their holdings. Usually, however, the increase in available shares allows more institutions to take non-trivial positions in the issuing company which may benefit the trading liquidity of the issuing company's shares. 63:, which is where the confusion between a dilutive (follow-on) and a non-dilutive secondary market offering possibly comes from. If a company were to make a third, primary-market offering, this would be a follow-on offering which is not a 196: 55:— in other words, an offering following an initial, primary-market offering. A follow-on offering which is the second offering from a company can be understood as a secondary 67:
offering. "Secondary offering" as described in this article is an offering on the secondary market which is non-dilutive, and is thus not a follow-on offering.
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Registered offering of a security that was previously issued to the public
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A secondary market offering should not be confused with a
51:, and is thus different from a secondary offering on the 126:"FINRA glossary definition of secondary offering" 808: 190: 791: 781: 197: 183: 130:Financial Industry Regulatory Authority 25:Financial Industry Regulatory Authority 809: 178: 152:"Follow-On Offering (FPO) Definition" 13: 14: 828: 166:"Learn About Secondary Offerings" 790: 780: 577:Debtor-in-possession financing 158: 144: 118: 1: 517:Staggered board of directors 7: 634:Accretion/dilution analysis 70: 10: 833: 597:Leveraged recapitalization 776: 768:Valuation using multiples 753:Sum-of-the-parts analysis 723:Modigliani–Miller theorem 624: 582:Dividend recapitalization 562: 410: 397:Secondary market offering 300: 289: 216: 27:(FINRA), is a registered 21:secondary market offering 786:List of investment banks 701:Free cash flow to equity 527:Super-majority amendment 452:Management due diligence 392:Seasoned equity offering 112: 102:Seasoned equity offering 23:, according to the U.S. 497:Shareholder rights plan 487:Post-merger integration 457:Managerial entrenchment 427:Contingent value rights 367:Initial public offering 639:Adjusted present value 502:Special-purpose entity 340:Direct public offering 310:At-the-market offering 107:At-the-market offering 654:Conglomerate discount 676:Economic value added 671:Discounted cash flow 261:Senior secured debt 38:venture capitalists 796:Outline of finance 708:Market value added 691:Financial modeling 649:Business valuation 572:Debt restructuring 350:Follow-on offering 335:Corporate spin-off 293:(terms/conditions) 210:investment banking 87:Follow-on offering 45:follow-on offering 36:insiders (such as 804: 803: 728:Net present value 713:Minority interest 644:Associate company 620: 619: 587:Financial sponsor 507:Special situation 477:Pre-emption right 467:Minority discount 377:Private placement 276:Subordinated debt 231:Exchangeable debt 218:Capital structure 206:Corporate finance 82:Corporate finance 824: 794: 793: 784: 783: 686:Fairness opinion 681:Enterprise value 664:Weighted average 592:Leveraged buyout 447:Drag-along right 345:Equity carve-out 302:Equity offerings 298: 297: 294: 266:Shareholder loan 251:Second lien debt 246:Preferred equity 226:Convertible debt 199: 192: 185: 176: 175: 170: 169: 162: 156: 155: 148: 142: 141: 139: 137: 122: 97:Secondary market 65:secondary market 49:secondary market 832: 831: 827: 826: 825: 823: 822: 821: 807: 806: 805: 800: 772: 748:Stock valuation 743:Residual income 659:Cost of capital 616: 612:Project finance 602:High-yield debt 558: 537:Tag-along right 462:Mandatory offer 432:Control premium 413: 406: 382:Public offering 330:Bought out deal 292: 291: 285: 212: 203: 173: 164: 163: 159: 150: 149: 145: 135: 133: 124: 123: 119: 115: 77:Public offering 73: 17: 12: 11: 5: 830: 820: 819: 802: 801: 799: 798: 788: 777: 774: 773: 771: 770: 765: 763:Terminal value 760: 755: 750: 745: 740: 735: 730: 725: 720: 715: 710: 705: 704: 703: 696:Free cash flow 693: 688: 683: 678: 673: 668: 667: 666: 656: 651: 646: 641: 636: 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62: 59:on a primary 58: 54: 50: 46: 41: 39: 33: 30: 26: 22: 817:Stock market 738:Real options 554:Tender offer 414:acquisitions 402:Underwriting 396: 387:Rights issue 290:Transactions 160: 146: 134:. Retrieved 120: 64: 60: 56: 42: 34: 20: 18: 512:Squeeze-out 482:Proxy fight 412:Mergers and 325:Bought deal 256:Senior debt 758:Tax shield 718:Mismarking 522:Stock swap 472:Pitch book 442:Divestment 320:Bookrunner 241:Pari passu 733:Pure play 626:Valuation 492:Sell side 355:Greenshoe 811:Category 564:Leverage 542:Takeover 437:Demerger 422:Buy side 71:See also 57:offering 29:offering 547:Reverse 532:Synergy 372:Pre-IPO 360:Reverse 281:Warrant 132:. 2010 61:market 271:Stock 113:Notes 208:and 138:2010 813:: 128:. 19:A 198:e 191:t 184:v 168:. 154:. 140:.

Index

Financial Industry Regulatory Authority
offering
venture capitalists
follow-on offering
secondary market
primary market
Public offering
Corporate finance
Follow-on offering
Primary market
Secondary market
Seasoned equity offering
At-the-market offering
"FINRA glossary definition of secondary offering"
Financial Industry Regulatory Authority
"Follow-On Offering (FPO) Definition"
"Learn About Secondary Offerings"
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t
e
Corporate finance
investment banking
Capital structure
Convertible debt
Exchangeable debt
Mezzanine debt
Pari passu
Preferred equity
Second lien debt
Senior debt

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