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Secondary price

Also called: secondary market price

In one line

The price at which private shares actually change hands between a seller and buyer in a secondary, usually below the last round price.

In plain English

The secondary price is what a real buyer will pay today — reflecting discounts for illiquidity, minority status and the common-versus-preferred gap. It's the number that matters when you sell.

If you were explaining it to a 5-year-old

The actual coins a kid hands you for your toy right now — usually a bit less than the fancy shop price tag.

Why it matters when you sell

This is the figure you'll negotiate and receive, so understanding how it's discounted from the last round price is essential.

Related terms

Last round priceDiscount for lack of marketability (DLOM)Illiquidity discountMinority discountCommon stock

Put it to use

What's a fair discount?

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Sources

A general market-practice term. See how we define and source the glossary in our methodology. General information, not advice.

Educational information only — not financial, tax or legal advice, and not an offer to buy or sell any security. Definitions are general; your own documents and local law govern your situation. PrivateTechShares is independent and not a broker or marketplace.