secondary distribution

secondary distribution definition - business

secondary distribution

The sale of a block of existing, not newly issued, securities with the proceeds going to the present holders rather than to the issuing firm. An especially large secondary distribution may put pressure on the security's price until the additional shares or bonds have been assimilated in the market. Also called secondary offering. Compare primary distribution. See also registered secondary distribution, spot secondary distribution.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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