secondary market

Secondary Market

A market on which an investor purchases an asset from another investor rather than an issuing corporation.

Investopedia Commentary

A good example is the New York Stock Exchange. Here all stock exchanges are part of the secondary market, as investors buy securities from other investors instead of an issuing company.

Related Links

Markets Demystified
How Does Someone Actually Transact Securities?

See also: Exchange, Primary Market, Third Market

secondary market

The market in which existing securities are traded among investors through an intermediary. Organized exchanges such as the New York Stock Exchange facilitate the trading of securities in the secondary market. Compare fourth market, primary market, third market. Also called aftermarket.

Main Entry: secondary market
Function: noun
1 : the market in which previously issued securities are sold —compare PRIMARY MARKET
2 : the market in which existing mortgages are bought and sold