Secondary Offering
A secondary offering is a public sale of existing (or newly registered) shares after the IPO — dilution or a holder exit, depending on who sells.
Definition
Secondary Offering refers to dilution or a holder exit, depending on who sells. Keep that definition fixed when comparing series, managers, or regimes — renaming the same tape does not create a new signal.
Why it matters
Equity risk premia compress or expand with earnings paths and factor regimes. When dilution or a holder exit, depending on who sells shifts, related hedges, limits, and narratives usually need an explicit update rather than a quiet assumption.
Case
Suppose a desk is positioned for the opposite of what secondary offering is saying. If dilution or a holder exit, depending on who sells moves against that book, the first question is not “is the story clever?” but whether size, hedges, and stop logic still match the observation.
How to read it
Separate index beta from residual; know the sector and factor loadings of the claim. Prefer a short written null hypothesis for Secondary Offering: what would falsify the current reading in the next window?