Secondary Stock

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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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.