# What is Secondary Sale?

A sale of existing shares from one holder to another, such as an early employee selling to a new investor. The company itself gets no new money, so ownership changes while its cash stays the same.

## In real work

In a secondary sale, an early engineer sold $200,000 of her shares to a new investor, and none of that money went to the company.

## Related terms

- [SAFE](https://prompthausapp.com/learn/safe.md)
- [Valuation Cap](https://prompthausapp.com/learn/valuation-cap.md)
- [Dilution](https://prompthausapp.com/learn/dilution.md)
- [Pro Rata](https://prompthausapp.com/learn/pro-rata.md)
- [Limited Partner](https://prompthausapp.com/learn/limited-partner.md)

## How is this different from Googling it?

Google gives a definition. Prompthaus pairs each term with how it shows up in standups, PRs, prompts, and design reviews. Then it quizzes you until the word sticks. One term a day on iPhone.

- Category: Venture
- HTML: https://prompthausapp.com/learn/secondary-sale
- App Store: https://apps.apple.com/us/app/prompthaus-ai-vocabulary/id6776314407