Secondary stocks
Secondary stocks
Stocks with smaller market capitalization, less quality and more risk than blue chip issues that behave differently than larger corporations' stocks.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved