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Secondary Distribution

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Secondary Distribution
Also known as secondary offering. The redistribution of a block of stock some time after it has been sold by the issuing company.

 


Secondary distribution/offering
Public sale of previously issued securities held by large investors, usually corporations or institutions, as distinguished from a primary distribution, where the seller is the issuing corporation.

Also called a secondary distribution, a secondary offering is distinguished from an initial public offering (or IPO) in that the proceeds generated by the sale of the shares goes to the shareholder rather than the issuing company.

secondary distribution The offering of a large unit of a security by a current shareholder. Also known as secondary offering. secondary listing Any listing of a security on an exchange other than its primary exchange. Secondary...

Secondary Distribution Index: An indicator constructed from the number of secondary distributions of stock occurring in a given period. Increased secondary activity creates additional supply and is seen as bearish for the market.

Secondary distribution
Secondary market
Securities Act of 1933
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It is opposite to secondary distribution, as the shareholder in that case offers stock for sale and the proceedings of that sale will go directly to the shareholder.

As with a primary offering (or IPO), secondary distributions are usually handled by an investment banker who purchases the shares from the seller at an agreed upon price, then resells them at a higher public offering price, ...

Primary distribution
Sale of a new issue of stock or bonds, as distinguished from a secondary distribution.

See also: Distribution, Limit, Period, Share, Yield

Stock market SECSecondary Market

 
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