Secondary Market

[SEK-un-dair-ee MAR-kit]

What is the definition of Secondary Market?

A market where securities are traded among investors subsequent to their original issuance in the primary market. This includes exchanges and over-the-counter markets where investors buy and sell securities such as stocks and bonds.

Using Secondary Market in an Example

For example, after a company issues new shares in an IPO (Initial Public Offering), which occurs in the primary market, these shares are then available for trading among investors on the stock exchange, which is a part of the secondary market.

Using Secondary Market in a sentence

She decided to sell her shares through the secondary market to capitalize on the increased stock value.

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