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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.
58:, 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 51:) 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. 74:, 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 207: 66:— 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 78:
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
62:, and is thus different from a secondary offering on the 137:"FINRA glossary definition of secondary offering" 819: 201: 802: 792: 208: 194: 141:Financial Industry Regulatory Authority 36:Financial Industry Regulatory Authority 14: 820: 189: 163:"Follow-On Offering (FPO) Definition" 24: 25: 839: 177:"Learn About Secondary Offerings" 801: 791: 588:Debtor-in-possession financing 169: 155: 129: 13: 1: 528:Staggered board of directors 7: 645:Accretion/dilution analysis 81: 10: 844: 608:Leveraged recapitalization 787: 779:Valuation using multiples 764:Sum-of-the-parts analysis 734:Modigliani–Miller theorem 635: 593:Dividend recapitalization 573: 421: 408:Secondary market offering 311: 300: 227: 38:(FINRA), is a registered 32:secondary market offering 18:Secondary equity offering 797:List of investment banks 712:Free cash flow to equity 538:Super-majority amendment 463:Management due diligence 403:Seasoned equity offering 123: 113:Seasoned equity offering 34:, according to the U.S. 508:Shareholder rights plan 498:Post-merger integration 468:Managerial entrenchment 438:Contingent value rights 378:Initial public offering 650:Adjusted present value 513:Special-purpose entity 351:Direct public offering 321:At-the-market offering 118:At-the-market offering 665:Conglomerate discount 687:Economic value added 682:Discounted cash flow 272:Senior secured debt 49:venture capitalists 807:Outline of finance 719:Market value added 702:Financial modeling 660:Business valuation 583:Debt restructuring 361:Follow-on offering 346:Corporate spin-off 304:(terms/conditions) 221:investment banking 98:Follow-on offering 56:follow-on offering 47:insiders (such as 815: 814: 739:Net present value 724:Minority interest 655:Associate company 631: 630: 598:Financial sponsor 518:Special situation 488:Pre-emption right 478:Minority discount 388:Private placement 287:Subordinated debt 242:Exchangeable debt 229:Capital structure 217:Corporate finance 93:Corporate finance 16:(Redirected from 835: 805: 804: 795: 794: 697:Fairness opinion 692:Enterprise value 675:Weighted average 603:Leveraged buyout 458:Drag-along right 356:Equity carve-out 313:Equity offerings 309: 308: 305: 277:Shareholder loan 262:Second lien debt 257:Preferred equity 237:Convertible debt 210: 203: 196: 187: 186: 181: 180: 173: 167: 166: 159: 153: 152: 150: 148: 133: 108:Secondary market 76:secondary market 60:secondary market 21: 843: 842: 838: 837: 836: 834: 833: 832: 818: 817: 816: 811: 783: 759:Stock valuation 754:Residual income 670:Cost of capital 627: 623:Project finance 613:High-yield debt 569: 548:Tag-along right 473:Mandatory offer 443:Control premium 424: 417: 393:Public offering 341:Bought out deal 303: 302: 296: 223: 214: 184: 175: 174: 170: 161: 160: 156: 146: 144: 135: 134: 130: 126: 88:Public offering 84: 28: 23: 22: 15: 12: 11: 5: 841: 831: 830: 813: 812: 810: 809: 799: 788: 785: 784: 782: 781: 776: 774:Terminal value 771: 766: 761: 756: 751: 746: 741: 736: 731: 726: 721: 716: 715: 714: 707:Free cash flow 704: 699: 694: 689: 684: 679: 678: 677: 667: 662: 657: 652: 647: 641: 639: 633: 632: 629: 628: 626: 625: 620: 618:Private equity 615: 610: 605: 600: 595: 590: 585: 579: 577: 571: 570: 568: 567: 562: 561: 560: 550: 545: 540: 535: 530: 525: 520: 515: 510: 505: 500: 495: 490: 485: 480: 475: 470: 465: 460: 455: 450: 445: 440: 435: 429: 427: 419: 418: 416: 415: 410: 405: 400: 395: 390: 385: 380: 375: 374: 373: 363: 358: 353: 348: 343: 338: 333: 328: 323: 317: 315: 306: 298: 297: 295: 294: 289: 284: 279: 274: 269: 264: 259: 254: 249: 247:Mezzanine debt 244: 239: 233: 231: 225: 224: 213: 212: 205: 198: 190: 183: 182: 168: 154: 127: 125: 122: 121: 120: 115: 110: 105: 103:Primary market 100: 95: 90: 83: 80: 64:primary market 26: 9: 6: 4: 3: 2: 840: 829: 826: 825: 823: 808: 800: 798: 790: 789: 786: 780: 777: 775: 772: 770: 767: 765: 762: 760: 757: 755: 752: 750: 747: 745: 742: 740: 737: 735: 732: 730: 727: 725: 722: 720: 717: 713: 710: 709: 708: 705: 703: 700: 698: 695: 693: 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Retrieved 131: 75: 71: 67: 53: 45: 31: 29: 523:Squeeze-out 493:Proxy fight 423:Mergers and 336:Bought deal 267:Senior debt 769:Tax shield 729:Mismarking 533:Stock swap 483:Pitch book 453:Divestment 331:Bookrunner 252:Pari passu 744:Pure play 637:Valuation 503:Sell side 366:Greenshoe 822:Category 575:Leverage 553:Takeover 448:Demerger 433:Buy side 82:See also 68:offering 40:offering 558:Reverse 543:Synergy 383:Pre-IPO 371:Reverse 292:Warrant 143:. 2010 72:market 282:Stock 124:Notes 219:and 149:2010 824:: 139:. 30:A 209:e 202:t 195:v 179:. 165:. 151:. 20:)

Index

Secondary equity offering
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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Corporate finance
investment banking
Capital structure
Convertible debt
Exchangeable debt
Mezzanine debt
Pari passu
Preferred equity
Second lien debt

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