secondary market

Secondary Market

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

Notes:

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.

See also: Exchange, Primary Market, Third Market

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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.