# Secondary Offering

*Markets & Instruments — Finicade finance glossary*

A secondary offering is a sale of shares after the IPO. The distinction that matters is who gets the money: in a primary follow-on the company issues new shares and raises capital, diluting existing holders; in a true secondary, existing holders sell their own shares and the company receives nothing. Offerings are usually priced at a discount to market, which is why the announcement typically knocks the share price down.

**Also known as:** follow-on offering, seasoned equity offering, share placement

**Related terms:** [IPO (Initial Public Offering)](https://finicade.com/glossary/ipo), [Dilution](https://finicade.com/glossary/dilution), [Rights Issue](https://finicade.com/glossary/rights-issue), [Free Float](https://finicade.com/glossary/free-float), [Direct Listing](https://finicade.com/glossary/direct-listing)

Source: https://finicade.com/glossary/secondary-offering