Piggy Back Registration

AAA

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."

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. SEC Form PREC14A

    A filing with the Securities and Exchange Commission (SEC) that ...
  2. Institutional Shares

    A class of mutual fund shares available for sale to investing ...
  3. Fully Paid Shares

    Shares issued in which no more money is required to be paid to ...
  4. Prospectus

    A formal legal document, which is required by and filed with ...
  5. Issued Shares

    The number of authorized shares that is sold to and held by the ...
  6. Underwriting

    1. The process by which investment bankers raise investment capital ...
Related Articles
  1. Brokers

    Brokerage Functions: Underwriting And Agency Roles

    Learning about these various activities can give insight into how securities are issued and traded.
  2. Fundamental Analysis

    Interpreting A Company's IPO Prospectus Report

    Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future.
  3. Options & Futures

    Understanding Rights Issues

    Not sure what to do if a company invites you to buy more shares at discount? Here are some of your options.
  4. Entrepreneurship

    Which is The Best Bank for Your Buck, BAC or MS?

    One things stands out between these financial services giants when it comes to investing in them.
  5. Investing

    What's Investment Banking?

    An investment bank is a special type of bank involved in a variety of large and complex financial services for major institutions.
  6. Trading Strategies

    Is Goldman Sachs Still A Winner?

    Goldman Sachs might not be the best dividend play out there, but there are other reasons you might want to consider it as an investment.
  7. Investing Basics

    The 10 Biggest Latin American Banks

    Brazil is home to most of the major banks in Latin America, claiming six of the ten largest financial institutions in the region.
  8. Investing Basics

    What's the Role of an Investment Bank?

    Investment banks provide financial advice to businesses and governments and help them raise capital through the sale of stocks, bonds and other products.
  9. Investing Basics

    The World's Top 10 Investment Banks

    These banks come out on top as measured by revenue numbers, global reach, employee headcount, income, and a number of other factors.
  10. Stock Analysis

    How Bank of America Holds 1/8 of All U.S. Deposits

    Bank of America isn't America's central bank, but given its size and spread, you could be forgiven this misapprehension.

You May Also Like

Hot Definitions
  1. Fixed-Charge Coverage Ratio

    A ratio that indicates a firm's ability to satisfy fixed financing expenses, such as interest and leases. It is calculated ...
  2. Efficiency Ratio

    Ratios that are typically used to analyze how well a company uses its assets and liabilities internally. Efficiency Ratios ...
  3. Fixed Cost

    A cost that does not change with an increase or decrease in the amount of goods or services produced. Fixed costs are expenses ...
  4. Subsidy

    A benefit given by the government to groups or individuals usually in the form of a cash payment or tax reduction. The subsidy ...
  5. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  6. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
Trading Center