Glossary · Liquidity
Secondary sale
When existing shareholders sell stock to someone else **before** a big IPO or acquisition — early employees or angels cashing out a slice to buy a house, for example.
Related: Initial public offering (IPO) · Exit · Preferred stock
A bit more nuance▾
- Companies and boards often control who can buy secondaries.
- Too much secondary too early can signal misalignment — context matters.
Go deeper▾
Discussion questions▾
- Who deserves early liquidity in your cap table story?
- What guardrails keep secondaries fair for everyone?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.