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. Issued Shares

    The number of authorized shares that is sold to and held by the ...
  3. Fully Paid Shares

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

    A class of mutual fund shares available for sale to investing ...
  5. Underwriting

    1. The process by which investment bankers raise investment capital ...
  6. Prospectus

    A formal legal document, which is required by and filed with ...
Related Articles
  1. Brokerage Functions: Underwriting And ...
    Brokers

    Brokerage Functions: Underwriting And ...

  2. Interpreting A Company's IPO Prospectus ...
    Fundamental Analysis

    Interpreting A Company's IPO Prospectus ...

  3. Understanding Rights Issues
    Options & Futures

    Understanding Rights Issues

  4. What You Need To Know About Financial ...
    Insurance

    What You Need To Know About Financial ...

comments powered by Disqus
Hot Definitions
  1. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  2. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  3. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  4. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
  5. Gresham's Law

    A monetary principle stating that "bad money drives out good." In currency valuation, Gresham's Law states that if a new ...
  6. Limit-On-Open Order - LOO

    A type of limit order to buy or sell shares at the market open if the market price meets the limit condition. This type of ...
Trading Center