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Secondary Offering

Secondary Offering Definition

Secondary Offering means a registered offering of a large block of a security which has been previously issued to the public.  The proceed of secondary offering can either be made by the issuing company or by a current shareholder. The issuance of new stock from a company is aimed to raise capital for growth. In this case the outstanding stock is increased. If one or more major stockholders in a company sell all or a large portion of their securities and the number of shares outstanding does not change, the process is also referred to as secondary distribution.







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