Secondary Distribution

The redistribution to the public of a block of shares owned by an existing shareholder (not from the corporate treasury).

Similar financial terms

Secondary market
The market where securities are traded after they are initially offered in the primary market. Most trading is done in the secondary market. The New York stock Exchange, as well as all other stock exchanges, the bond markets, etc., are secondary markets. Seasoned securities are traded in the secondary market.

Secondary issue
A secondary issue is both a (a) procedure for selling blocks of seasoned issues of stocks or (b) more generally, the sale of already issued stock.

Lognormal distribution
A varaible has a lognormal distribution when the logarithm of the variable has a normal distribution.

Standardized normal distribution
A normal distribution with a mean of 0 and a standard deviation of 1.

Skewed distribution
Probability distribution in which an unequal number of observations lie below and above the mean.

Probability distribution
Also called a probability function, a function that describes all the values that the random variable can take and the probability associated with each.

Normal probability distribution
A probability distribution for a continuous random variable that is forms a symmetrical bell-shaped curve around the mean.

Cumulative probability distribution
A function that shows the probability that the random variable will attain a value less than or equal to each value that the random variable can take on.

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Surtax

An additional tax levied as a percentage of an income tax amount. Both individuals and corporations pay surtaxes in addition to their base amount of federal tax.


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