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Finance: What is a primary offering, and what are Primary Shares? 29 Views


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Description:

A primary offering is just an IPO - the initial public offering of a given stock. Primary shares are the shares of that stock that are sold... publicly.

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Transcript

00:00

finance a la shmoop what is a primary offering and what are primary shares all

00:09

right people let's start with the primary offering it's pretty much just

00:13

an IPO or initial public offering of stock that's primary and hello 1933 Act [The 1933 securites act is slid onto a desk]

00:19

that's what gave rise to all the regulations around primary offerings its

00:23

original shares virgin ones in fact now being offered for the first time to an [Someone holding 'extra virgin stock']

00:29

investor public primary offering that's what it is

00:31

but primary shares also come from private companies like a venture capital [Sign for a venture capital company]

00:36

company might buy primary shares in a b round from whatever.com as that company

00:42

funds its growth now once a company is already public its shares will have

00:46

traded back and forth in many different hands over time those would be called [Secondary shares stamp]

00:51

secondary shares and hello 1934 Act which set the regs all around

00:56

secondaries so yeah primary 1933 secondary 1934 and well that's pretty

01:01

much it as long as you can count to two this one's a pretty easy concept to

01:05

would wrap your head around.. primarily.. [Woman looks confused]

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