Secondary market offering

A second placement (English secondary market offering, secondary public offering, or simply secondary offering ) refers to a process in which a shareholder or several shareholders ( called shareholders ) of a listed company to sell a larger quantity of shares of this company in their possession at the same time and the perform by means of a public offer. The offer must be made attractive to the investor. Therefore, often the institutional investors are granted markdowns. The more illiquid the value, the higher the discount. Furthermore, investors can buy larger packages without affecting the course.

The process is carried out only when large quantities of shares to be sold in this way, otherwise the shares are offered simply through the normal exchange trading.

In contrast to a capital increase of new (additional ) shares of the corporation come on the market, the proceeds to the selling shareholders and not the company will generate from a secondary offering.

After a secondary offering more shares of the AG are in free float, which has a positive impact on the marketability and liquidity of the shares of the company.

See also: IPO ( initial placement, Primary Offering)

• Stock market