Primary shares (Ofer Abarbanel online library)

In an equity offering, primary shares, in contrast to secondary shares, refer to newly issued shares of common stock.[1] Proceeds from the sale of primary shares go to the issuer, while those from preexisting secondary shares go to shareholders.[2][3]

Most initial public offerings (IPOs) have a mix of both primary and secondary shares.[3][4]


  1. ^Stern, Erik; Hutchinson, Mike (2011) [2004]. “Chapter 20: Initial Public Offering”. The Value Mindset: Returning to the First Principles of Capitalist Enterprise. Hoboken, NJ: John Wiley & Sons. ISBN 978-1-118-16091-6.
  2. ^“Equity Capital Market (ECM) – Corporate Finance Institute”. Corporate Finance Institute. Retrieved 2018-01-09.
  3. ^ Jump up to:ab Geddes, Ross (2003). IPOs and Equity Offerings. Elsevier Finance. Oxford and Burlington, MA: Elsevier. p. 7. ISBN 978-0-08-047878-4.
  4. ^Khurshed, Arif (2011). Initial Public Offerings: The mechanics and performance of IPOs. Petersfield, UK: Harriman House Limited. p. 129. ISBN 978-1-905641-15-4.


Ofer Abarbanel online library