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A
sale of securities in which one or more major stockholders in a company
sell all or a large portion of their holdings. The underwriting proceeds
are paid to the stockholders rather than to the corporation.
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Typically
such an offering occurs when the founder of a business (and perhaps
some of the original financial backers) determine that there is more
to be gained by going public than by staying private. The offering
does not increase the number of shares of stock outstanding.
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