Secondary Shares 

Secondary Shares refer to existing shares of a company that are sold by current shareholders, such as company founders, employees, or early investors, rather than new shares issued by the company itself. These are commonly sold in secondary market transactions, especially in later-stage private rounds or after an IPO. 

Secondary share sales allow early stakeholders to realize liquidity before a company’s public listing or full exit event. While no new capital is raised for the company through these transactions, they help attract new investors and manage shareholder equity.