Spot Secondary


DEFINITION of 'Spot Secondary'

The sale of a previously issued security that does not require a Securities and Exchange Commission (SEC) registration statement. Certain requirements must be met to avoid registration. A spot secondary offering is typically offered to institutional investors instead of the general public. A secondary distribution differs from a spot secondary in that the former is required to be registered with the SEC.

BREAKING DOWN 'Spot Secondary'

A spot secondary offering is not registered with the SEC and, as such, can typically be performed more quickly than other types of secondary offerings. Shares that are issued through a spot secondary offering are typically priced at a discount to institutional investors. A managing underwriter, or bookrunner, generally acts as an agent for the firm in purchasing, carrying and distributing the spot secondary offering.

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  2. Follow-On Offering

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  3. Direct Public Offering - DPO

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  4. Initial Public Offering - IPO

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  5. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
  6. Primary Offering

    The first of issuance of stock for public sale from a private ...
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