Secondary sale
MarketsDefinition
Transaction where existing shareholders (founders, employees, early investors) sell their shares — different from a primary issuance where the company itself issues new shares.
Pre-IPO secondary markets (Forge Global, EquityZen) let employees sell pre-IPO equity to accredited investors. Secondary at premium pricing is a positive signal; at deep discount can foreshadow trouble.
Pre-IPO secondary markets (Forge Global, EquityZen) let employees sell pre-IPO equity to accredited investors. Secondary at premium pricing is a positive signal; at deep discount can foreshadow trouble.