Business Pitch Dictionary by pitch.dog
Exits, liquidity & investor returns · Core

Secondary sale

Also called: secondary transaction

ELI5

An existing owner sells shares to another investor.

Used in conversation

“The secondary sale gives employees partial liquidity.”

Definition

A sale of existing shares by a shareholder rather than issuance of new company shares.

Here “Secondary sale” means: A sale of existing shares by a shareholder rather than issuance of new company shares.

Pitch context

You will see “Secondary sale” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches exits, liquidity & investor returns.

Why it matters: In exits, liquidity & investor returns, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 6

Direct term-level sources and supporting source families.