Secondary shares
In an IPO, secondary shares, in contrast to primary shares, refer to existing shares of common stock that are sold to new investors.
In an equity offering, primary shares, in contrast to secondary shares, refer to newly issued shares of common stock that are sold to investors.
Generally, the company offers primary shares this way, although sometimes secondary shares are also sold as IPOs. For a company to offer IPOs, they need to hire a corporate lawyer as well as an investment banker to underwrite the offer.
The follow-on offering can consist of primary and/or secondary shares. Companies will sometimes authorize additional shares that are issued at a higher price following a successful initial public offering. Also called add-on financing, piggyback.
The company will usually issue only primary shares, but may also sell secondary shares. Typically, a company will hire an investment banker to underwrite the offering and a corporate lawyer to assist in the drafting of the prospectus.
 See also: Stock, Primary shares, Cash, Offer, Issue
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