A secondary offering refers to the process where a company issues additional shares of its stock after its initial public offering (IPO). This can happen when a company wants to raise more capital for various purposes, such as funding new projects or paying off debt. Unlike an IPO, where new shares are created, a secondary offering can also involve existing shareholders selling their shares to the public. In a secondary offering, the company may benefit from increased liquidity and visibility in the market. However, it can also dilute the value of existing shares, as more shares are available. Investors often analyze the reasons behind the offering to assess its potential impact on the company's future performance.