selling shareholders
Definition
Investors in a private company who sell their shares at the Initial Public Offering (IPO). Investors often interpret a significant volume of trades from selling shareholders as undermining confidence in the new issue.
Use this term in a sentence
“ You should try to make sure that you are doing everything to keep your selling shareholders happy with your company. ”
“ When I became aware of the of selling shareholders it cooled my initial interest for investing and I found a better place to put my money. ”
“ After my brother's start-up company went public, he insisted on restricting his partners from becoming selling shareholders during the IPO to keep confidence high. ”
