Secondary offering rules and regulations

Answer 1

Secondary offerings refer to the sale of existing shares by shareholders, typically insiders or large investors, rather than the company itself. Regulations governing these offerings are primarily set by the Securities and Exchange Commission (SEC) in the U.S., requiring that sellers provide adequate disclosure about the shares being sold and the financial condition of the company. Companies must file a registration statement, which includes a prospectus detailing the offering, unless an exemption applies. Additionally, secondary offerings can impact stock prices and market perception, as they may signal dilution of shares or changes in investor confidence.