Secondary Market

The secondary market is the financial market where previously issued financial instruments including stock, bonds, options, and futures are bought and sold. The term secondary market refers to the market generated by the subsequent trading of such securities, in contrast to primary market, which refers to the market for fresh issues of securities. Initial public offerings (IPOs) are an example of primary markets. The primary market is the initial sale of the security by the issuer to a buyer who then pays the issuer the proceeds. The secondary market is where all transactions that take place following the security's initial sale. In secondary market, also known as aftermarket, the underwriter resells the securities to additional bidders. The secondary market is where holders of securities can buy and sell them. The secondary market is what most people refer to as the stock market. The Nasdaq and the New York Stock Exchange are examples of U.S. secondary markets.