Secondary Offering An offering, generally through an underwriting, of securities already issued and owned by a selling shareowner. This occurs when the number of shares to be sold is considered too large for the trading market to absorb without harmful effects on the market price. A secondary offering is often included with a primary offering made at the same time by the company. When there is a secondary offering included in the initial public offering, some investors believe it shows a lack of faith and an effort by the selling shareowners to bail out. The term secondary offering is frequently misused to apply when a company makes its second public offering.
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