The sale of closely held or new shares by the company that has already made an initial public offering is called a secondary offering. In a secondary offering, either a significant shareholder sells a big part of the stock they hold or the company issues new shares.

1. Secondary
Offering
A secondary offering is when one investor chooses to
sell a huge amount of their shares to another investor
in the secondary market, when the company is
considering a secondary offering, the main points that
change here are the dilution of the existing
shareholders and the share owned by the company

2. Types Of
Secondary Offering
Dilutive Offering
In a dilutive offering, the company
issues new shares, and the value of
the existing shares dilutes

3. Types Of
Secondary Offering
Non -Dilutive Offering
In a non-dilutive offering, the
company’s majority stockholders sell
their holdings after the initial public
offering