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How does a secondary offering differ from an IPO?

A secondary offering occurs when a company that already has its stock publicly traded on an exchange, issues additional shares to the public. A secondary offering is often priced at or slightly below the prevailing market price of the stock at the time of effectiveness and pricing and, after the shares are distributed, will increase the number of shares the company has publicly available, which in the short terms can have a dilutive impact on the share price of the stock.