This is a type of offering that allows both institutions and large investors to offload their large block of holdings in the particular company through the registration. According to the U.S. financial Industry Regulatory Authority (FINRA), the sale proceeds of the offering will not go to the company and to the selling stockholders. These shares were already issued to the selling stock holders and that they are selling in large blocks at their convenient time after completing the restricted period. This is also known as secondary distribution.