A sale of stock by an existing shareholder to a third-party purchaser in contrast to the initial sale of the stock (or equity plan grant) by the company to investors or employees. In the context of private companies, these are sales of stock by employees and/or investors. This term could refer to sales of stock on third-party trading markets or company-sponsored liquidity transactions that are structured as a buyback of stock or part of a round of equity financing (sometimes called a "liquidity round"). For details, see the related FAQ on this website.