principal market

Principal Market

The primary exchange on which a security is traded. For example, most blue chip companies list their principal market as the New York Stock Exchange because it is a large exchange with a high trading volume. Nevertheless, these stocks can and do trade on other exchanges, as well as in the over-the-counter market.

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principal market

The main market in which a security trades. The principal market for the common stock of most large corporations in the United States is the New York Stock Exchange, even though most of this stock also trades on one or more other exchanges and in the over-the-counter market. See also consolidated tape.

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.