Secondary Market

Definitions

1. The market where existing shares or securities trade between holders rather than being newly issued by the company. In startup contexts, secondary markets give employees and early investors partial liquidity before an IPO or acquisition.

   In plain English: The market where existing shares are bought and sold between current and new holders.

   Example: "Employee liquidity came through the secondary market, not a new fundraising round."

Related Terms

• Escrow
• Exit Event
• Heads of Terms
• Holdback
• IPO Lockup
• Right of First Refusal
• ROFR
• Secondary Sale