Secondary market

Definition

The secondary market is a marketplace where investors buy and sell securities they already own, such as stocks or bonds, which were previously issued in the primary market. Unlike the primary market where securities are created, in the secondary market, ownership changes hands without involving the issuing companies directly.

Related terms

Primary Market: The financial market where new securities are issued and sold for the first time by corporations or governments.

Stocks: Shares of ownership in a company that can be bought and sold in financial markets.

Bonds:

Debt investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a fixed interest rate