Secondary Offering Law and Legal Definition

Secondary offering refers to the issuance of new stock for public sale from a company that has already made its initial public offering. Such offerings are usually made by major stockholders of mature companies who may be control persons or institutions who originally acquired the securities in a private placement. It can also be made by companies wishing to refinance, or raise capital for growth. Secondary offerings are usually done through investment bankers.

Secondary offering also refers to an offering of previously issued securities by persons other than the issuer.