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Merge edit
This is the same article as Secondary Market Offering. They should be merged. Ironicon (talk)
- Not completely true; some follow on offerings are on the primary market by the issuer, therefore they are not all secondary market offerings.--68.175.35.188 (talk) 11:11, 10 April 2011 (UTC)
When a company sells stock to the public for the first time in an SEC-registered offering, this is an Initial Public Offering (IPO). Subsequent sales of stock to the public by the company are called follow-on offerings. If major shareholders of a company wish to sell their shares, subject to the company’s agreement, the shares can be sold using the company’s registration statement, enabling a broad selling effort. This is called a selling shareholder offering (or a secondary offering), and the agreement to use the company’s registration statement is called a registration rights agreement. Source: An Introduction to Investment Banks, Hedge Funds, and Private Equity: The New Paradigm, Chapter 3, Financings.--Wall Street CEO (talk) 05:45, 9 October 2011 (UTC)
Secondary offerings and follow-on offerings may be distinct, but the article leaves the terms somewhat ambiguously defined. The lead says follow-ons are "often but incorrectly called secondary offering" and yet later the article defines a "non-dilutive follow-on offering". The way non-dilutive follow-ons are defines is the same as the definition of secondary offering. One way of clarifying this is not to say that it is incorrect to call a follow-on offering a secondary offering. Instead, the article can define two types of follow-ons, one dilutive and one non-dilutive. And then say that dilutive follow-ons are also called secondary offerings. In other words, follow-on offerings are an umbrella term and a superset of secondary offerings. Thoughts? Coastside (talk) 15:08, 17 January 2014 (UTC)