In an IPO, secondary shares (in contrast to primary shares) refer to existing shares of common stock that are sold to investors in an offering (see Secondary Market Offering). The selling of these secondary shares may be from existing shareholders, or may be newly registered shares from the company. In the case of newly registered shares, the offering is referred to as "dilutive" (to EPS) due to the increase in the number of outstanding shares. In the case of selling shares of already registered stock (from an institutional block or from insider shares), the offering is considered "non-dilutive".
Famous quotes containing the words secondary and/or shares:
“Cloud-clown, blue painter, sun as horn,
Hill-scholar, man that never is,
The bad-bespoken lacker,
Ancestor of Narcissus, prince
Of the secondary men. There are no rocks
And stones, only this imager.”
—Wallace Stevens (1879–1955)
“The ideal of men and women sharing equally in parenting and working is a vision still. What would it be like if women and men were less different from each other, if our worlds were not so foreign? A male friend who shares daily parenting told me that he knows at his very core what his wife’s loving for their daughter feels like, and that this knowing creates a stronger bond between them.”
—Anonymous Mother. Ourselves and Our Children, by Boston Women’s Health Book Collective, ch. 6 (1978)