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Secondary Stock

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Secondary Stock
Any stock issued by a publicly-traded company other than a blue chip company. Secondary stocks are issued by less well-established and less well-known companies; as a result, they carry higher risk than blue chip stocks. However, they can have higher growth potential. Secondary stocks tend to have a smaller market capitalization, often under $1 billion.

secondary stock
The stock of a smaller firm listed on the New York Stock Exchange or nearly any stock traded on the American Stock Exchange, the regional exchanges, or in the over-the-counter market. These generally volatile stocks often exhibit price movements different from those of the large blue chips. Also called second-tier stock.


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to a strategic buyer or divest it through a secondary stock offering, Chief Executive Officer Jerry Grandey said, reported Bloomberg.
Secondary stocks were also impacted; those stocks that make hand cleanser and respiratory masks for example.
As bank lending, and the minimization of risk in a tougher environment, is leading buyers to seek quality, this gap is widening again with only prime property producing a steady income return and secondary stock expected to fall by more than 20 per cent in capital value in 2009.
 
 
 
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