secondary-public-offering

Vocabulary Word

Definition

A 'secondary-public-offering', often called an 'SPO', is when existing stockholders of a company sell their shares to the public again. You can think of it as a second chance for others to buy shares they missed initially.

Examples in Different Contexts

In corporate finance, a 'secondary public offering' is when a company issues more shares for sale to the public after the initial offering. A CFO might state, 'Our secondary public offering will raise additional capital for expanding our operations.'

Practice Scenarios

Marketing

Scenario:

Looking at our company's position in the market, we need strategies that will promote our public image.

Response:

With the secondary public offering in sight, we have an opportunity to reshape our brand's narrative.

Startup

Scenario:

The startup is showing incredible growth. We need to evaluate the right time for exit.

Response:

Given our success, a secondary public offering seems like an effective way to exit our investment.