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Secondary sale

Also called: secondary, secondary transaction

In one line

A sale of existing private shares from a shareholder (like an employee) to a buyer, rather than the company issuing new shares.

In plain English

In a secondary, you sell shares you already own to an investor — the money goes to you, not the company. It's the main way employees turn private equity into cash before an IPO.

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

Instead of the toy shop making a new toy, you sell the toy you already own to another kid. The coins go into your pocket.

Why it matters when you sell

This is the core transaction this whole site is about — but it's gated by your company's transfer rules, so understanding the mechanics is step one.

Related terms

Tender offerRight of first refusal (ROFR)Transfer restrictionSpecial purpose vehicle (SPV)Secondary market

Put it to use

How to find a buyer · Can I sell before exit?

Hold private-company shares? Our free estimator shows what your stake could be worth and whether you can sell — no sign-up. Value my equity (free) → · Back to the glossary →
When you're ready to go deeper, there's an optional Equity Toolkit and Report.

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.