Secondary sale

Selling private company shares to a buyer other than the company, before or after IPO.

A is when you sell existing shares to an investor or platform, rather than exercising options into a primary round or selling on a public exchange.

Tax treatment depends on your basis, holding period, and whether the company is private or public. You may need to coordinate with company transfer restrictions.

Secondary sales can provide liquidity before an IPO, but pricing, approval, and tax reporting are more complex than routine public-market trades.

Related terms

Educational definition only. Your grant documents, employer payroll, and tax forms control your situation.