Secondary market (redirected from Aftermarket (finance))

Secondary market

The market in which securities are traded after they are initially offered in the primary market. Most trading occurs in the secondary market. The New York Stock Exchange, as well as all other stock exchanges and the bond markets, are secondary markets. Seasoned securities are traded in the secondary market.

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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. Also called aftermarket. Compare fourth market, primary market, third market.

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Secondary market. When investors buy and sell securities through a brokerage account, the transactions occur on what's known as the secondary market.

While the secondary market isn't a place, it includes all of the exchanges, trading rooms, and electronic networks where these transactions take place.

The issuer -- company or government -- that sold the security initially receives no proceeds from these trades, as it does when the securities are sold for the first time.