In an equity offering, primary shares, in contrast to secondary shares, refer to newly issued shares of common stock. Proceeds from the sale of primary shares go to the issuer, while those from preexisting secondary shares go to shareholders.
Most initial public offerings (IPOs) have a mix of both primary and secondary shares.
References
- Stern, Erik; Hutchinson, Mike (2011) . "Chapter 20: Initial Public Offering". The Value Mindset: Returning to the First Principles of Capitalist Enterprise. Hoboken, NJ: John Wiley & Sons. ISBN 978-1-118-16091-6.
- "Equity Capital Market (ECM) - Corporate Finance Institute". Corporate Finance Institute. Retrieved 2018-01-09.
- ^ Geddes, Ross (2003). IPOs and Equity Offerings. Elsevier Finance. Oxford and Burlington, MA: Elsevier. p. 7. ISBN 978-0-08-047878-4.
- Khurshed, Arif (2011). Initial Public Offerings: The mechanics and performance of IPOs. Petersfield, UK: Harriman House Limited. p. 129. ISBN 978-1-905641-15-4.
 | This article about stock exchanges is a stub. You can help Misplaced Pages by expanding it. |