Piggy Back Registration

DEFINITION of 'Piggy Back Registration'

When an underwriter allows existing company shares to be sold in conjunction with a new public offering. The registration of these securities is said to be "piggybacking" off the IPO (hence the term "piggy back registration"). That said, a piggy back registration is distinct and not the same as "piggybacking."

BREAKING DOWN 'Piggy Back Registration'

In order for a piggyback registration to take place, the underwriter must sign off on the idea and the arrangement must be noted in the new issue's prospectus. Under such arrangements, the prospectus will give all the details, including the names of those selling private shares. Piggy back registrations are often done as a means of consolidating all the outstanding shares and allowing joint venturers to participate in the IPO.

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RELATED FAQS
  1. How does piggyback registration work?

    Registration rights ensure that companies cooperate during the registration process through which investors register shares ... Read Answer >>
  2. How long is the validity period for a Series 63 exam if I have not been registered?

    Find out how registration begins using Series 63 results and how long scores are valid without registration. Learn more about ... Read Answer >>
  3. If an issuer wishes to register a security in the state ...

    The correct answer is a. Registration by coordination is permitted when the issuer has filed a registration application with ... Read Answer >>
  4. Can you trade securities before you pass the Series 63 exam?

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    The correct answer is d) Rule 147 is a rule that allows for intrastate offerings to be exempt from the requirements of full ... Read Answer >>
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