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.

RELATED TERMS
  1. Secondary Market

    A market where investors purchase securities or assets from other ...
  2. Secondary Stock

    A stock that is considered riskier than blue chips because it ...
  3. Impact Day

    The date on which a corporation makes a secondary offering of ...
  4. Secondary Liquidity

    A form of liquidity that is part of an initial public offering ...
  5. Open Offer

    A secondary market offering that is similar to a rights issue ...
  6. Secondary Offering

    1. The issuance of new stock for public sale from a company that ...
Related Articles
  1. Markets

    Comparing Primary And Secondary Capital Markets

    In the primary capital market, investors buy directly from the issuing company. In the secondary market, investors trade securities among themselves.
  2. Investing Basics

    What is the Secondary Market?

    The secondary market is where investors purchase securities or assets from other investors, rather than from the issuing companies themselves.
  3. Investing Basics

    What's a Secondary Offering?

    A secondary offering is the issuance of new stock from a company that has already made its initial public offering.
  4. Professionals

    Secondary Offerings and Shelf Distributions

    Secondary Offerings and Shelf Distributions
  5. Professionals

    Types of Markets

    CFA Level 1 - Types of Markets. Learn the differences between primary and secondary markets. Looks at where securities are issued and where they will trade after being sold.
  6. Professionals

    Introduction

    Investors, who do not purchase their stocks and bonds directly from the issuer, must purchase them from another investor. Investor-to-investor transactions are known as secondary market transactions. ...
  7. Professionals

    Types Of Offerings

    Securities that are being sold under a prospectus may include securities that are part of different types of offerings. The different types of offerings include initial public offerings, subsequent ...
  8. Professionals

    Introduction

    Investors, who do not purchase their stocks and bonds directly from the issuer, must purchase them from another investor. Investor-to-investor transactions are known as secondary market transactions. ...
  9. Professionals

    State Authority over Federal Covered Securities

    FINRA/NASAA Series 65 - State Authority over Federal Covered Securities. In this section exchage-listed securuties, investment company shares and initial pyblic offering.
  10. Professionals

    Types Of Financial Markets And Their Roles

    We check out the many different types of financial markets and how they fit into the overal economy.
RELATED FAQS
  1. What constitutes a secondary market?

    Find out what constitutes a secondary market, and learn why that term can be applied far more broadly than you might initially ... Read Answer >>
  2. Why do we need a secondary market?

    Find out why secondary markets play a crucial role in economic activity by promoting efficiency, safety, information and ... Read Answer >>
  3. What's the difference between primary and secondary capital markets?

    Learn how in the primary capital market, securities are issued for the first time, while in the secondary market, investors ... Read Answer >>
  4. After a federal covered security has filed notice with the Administrator for an ...

    The correct answer is b. Notice filings are required under the Act for both initial and secondary offerings of federal covered ... Read Answer >>
  5. Are secondary capital markets beneficial for society, or are there purely speculative?

    Learn why secondary bond markets are essential for both the capital market and economy. Explore the reasons they must be ... Read Answer >>
  6. What financial regulation exist to control the secondary market?

    Examine a brief characterization of financial regulation in the secondary market, including self-regulatory organizations ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center