Second placement (stock exchange)

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A secondary offering (English secondary market offering , secondary public offering or simply secondary offering ) refers to a process in which a shareholder or several shareholders (called shareholders) of a listed company would like to sell a larger amount of shares of the company from their possession at the same time and the by means of a public offer. The offer must be made attractive to the investor. That is why institutional investors are often given discounts. The more illiquid the value, the higher the discount. In addition, investors can buy larger packages without affecting the price.

The process is only carried out in this way for large quantities of shares to be sold, otherwise the shares are simply offered via normal stock exchange trading.

In contrast to a capital increase in which new (additional) shares in the stock corporation come onto the market, the proceeds from a secondary placement go to the selling shareholders and not to the company.

After a secondary placement, more shares in the AG are in free float , which has a positive impact on the tradability and liquidity of the company's shares.

See also: IPO (first placement or English Primary Offering )