secondary 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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Secondary Market

The market for all investors in a security, except for the first ones to whom a new issue of a security is sold. The secondary market consists of all sellers and buyers, except for the issuer and the first group of investors who bought the issue. The secondary market is often less volatile than the primary market because it is easier to determine the underlying value of a security after it has already begun trading. Nearly all trading of a security occurs on the secondary market.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

secondary market

A general description for the sale and purchase of financial instruments.The New York Stock Exchange is a secondary market for shares of stock. Although there is not a similar central exchange vehicle,trading in existing mortgages is also called the secondary market.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Optimal Blue LLC, provider of secondary marketing automation and services in the mortgage industry, recently announced the introduction of a comprehensive new Enterprise Secondary Marketing Solution for credit unions, the company said.
Credit unions that sell directly to Fannie Mae and Freddie Mac can now take advantage of this new offering that combines Optimal Blue's best-in-class secondary marketing automation, product eligibility and pricing engine, and note rate hedging, as well as the bespoke features needed to offer credit union members a more competitive product lineup.
Before joining Fulton, Scheuren served as senior vice president of Secondary Marketing for Waterfield Bank.
The partnership marks the first time a vendor has coupled best efforts and mandatory functionality, and it allows mortgage bankers to maximize secondary marketing profitability through the use of sophisticated risk-management and operational tools, according to Larry Huff, co-founder and co-chief executive officer of Optimal Blue.
"When you can create multiple loan-level pricing strategies and integrate them with secondary marketing applications, mortgage bankers can significantly increase revenues--which is essential in today's market of compressing margins," he added.
"We selected ASC's PowerSeller to run best-executions reports automatically, reducing the time it takes to get the best price for mortgage-backed securities and maximizing our return on each loan," said Joseph Scheuren, Superior Mortgage's senior vice president of secondary marketing. "Since implementation, we are able to leverage PowerSeller's data-management capabilities to increase the basis points we can get per loan by approximately 15 to 20 points."
PowerSeller enables secondary marketing teams to manage risk more efficiently using fallout analysis, trade-management features and best-execution and delivery of pooling capabilities.
AUS and secondary marketing technologies are both core to the business of mortgage banking, but lenders have adopted each at significantly different rates.
Secondary marketing decision making is important to all lenders that sell loans or that deliver mortgage securities in the open market.
"I couldn't imagine going back to how I did business even four years ago," says Linda Marney, assistant vice president and secondary marketing manager for First Union Mortgage Corp.
Secondary marketing was an often-overlooked aspect of Norwest Mortgage, Inc.'s recent purchase of a good portion of Prudential Home Mortgage.
Using understandable language and logical examples, summaries of other areas of the secondary mortgage market are given, including: the sales aspect of secondary marketing; lenders, investors and middlemen; private-issue mortgage-backed securities; and risk in the secondary mortgage market.

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