secondary offering

A secondary offering occurs when a company that is already publicly traded sells additional shares to the market. Unlike the initial initial public offering (IPO), which raises funds to start the company, a secondary offering usually involves existing shareholders, such as early investors or insiders, selling their shares. This process can help shareholders cash out or raise capital for the company without issuing new shares. The new shares or sold shares increase the total number of outstanding shares, which can impact the stock’s price and supply dynamics in the market.