Verbull Word of the day
Finance glossary

Secondary Market

Investing · intermediate
Definition

Where investors trade existing securities among themselves.

The secondary market is where previously issued securities change hands between investors, such as the stock exchanges. The issuing company gets no new money from these trades. This market provides the liquidity and price discovery that make the primary market viable.

In a sentence

Once the shares were issued, investors traded them among themselves on the secondary market.

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