Secondary distribution

A secondary distribution is the sale of a large number of shares by one or more large investors. The sale is handled by a securities firm and so is not conducted through a stock exchange. The proceeds of the sale go to the investors holding the stock, not the issuing entity. The price at which the shares are offered is usually close to the market price of the shares. This is not a new issuance of shares, so the total number of shares outstanding remains the same.