Primary distribution refers to the sale of a new issue of stocks or bonds, distinguishing it from secondary distribution, which involves previously issued stock. All issuances of bonds are primary distributions, and it is also known as a primary offering. It should not be confused with an initial public offering (IPO), which is a corporation's first distribution of stock to the public.
A secondary distribution refers to the public sale of previously issued securities held by large investors, such as corporations, institutions, or affiliated persons, rather than a new issue where the seller is the issuing corporation.
A secondary offering, also known as a secondary distribution, is the sale of new or closely held shares of a company by investors, usually institutions, who are selling off their positions entirely or part of it.
