Secondary Public Offering

Secondary public offering is an excellent method for a company to raise additional working capital

Secondary public offering financial moves are an excellent way to generate quick capital for a business. This is the sale of all or most of the securities by the top stockholders of a particular company. The proceeds from the sales benefit the company. Often times the company itself owns most of its own stock.

A secondary public offering falls under the SEC guidelines, so it is recommended that it should be conducted through a registered broker dealer or an investment bank. This will help your business avoid any liability.

There are two main types of secondary public offerings they include an issuer offering (the company selling its additional shares) and an offer for sale by another investor (private shareholder). The first option, issuer offering, is the best method for raising capital.

Besides a secondary public offering, a more common approach to raising capital is through a standard business loan. Not all businesses have shares available for sale so more traditional financing options may be a better option for you.


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