Selling Shareholders

Definition:

In the context of a Primary Offering, investors in a private company who sell their shares at the IPO. Investors may be skeptical of any IPO in which shareholders are selling large amounts of stock.

In the context of a Secondary Offering, the term may simply refer to a shareholder reselling its shares in the market or it also may refer to holders of securities who are selling in an SEC-registered Secondary Offering.

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