Definition
A marketplace where shareholders can sell their existing equity to other investors, providing liquidity before an IPO or acquisition. It's the emergency exit when waiting for an actual exit feels like waiting for Godot.
Example Usage
After ten years, employees finally got liquidity through a secondary market sale, selling shares at a 30% discount to the last round valuation.
Origin
Public markets terminology adapted to private company equity, became prominent with platforms like SharesPost and EquityZen in the 2010s.
Fun Fact
Secondary markets exploded during the prolonged IPO drought of 2022-2023, as employees at 'unicorns' realized their equity might be locked up indefinitely.
Source: Private equity and secondary transaction markets
Related Terms
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See “secondary market” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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