Definition of Secondary market:
Customers other than those to whom a product was originally offered. For example, tools designed and priced for professionals may also be bought by serious hobbyists.
Financial market where previously issued securities (such bonds, notes, shares) and financial instruments (such as bills of exchange and certificates of deposit) are bought and sold. All commodity and stock exchanges, and over-the-counter markets, serve as secondary markets which (by providing an avenue for resale) help in reducing the risk of investment and in maintaining liquidity in the financial system.
Alternative term for aftermarket.
The secondary market is where investors buy and sell securities they already own. It is what most people typically think of as the "stock market," though stocks are also sold on the primary market when they are first issued. The national exchanges, such as the New York Stock Exchange (NYSE) and the NASDAQ, are secondary markets.
Though stocks are one of the most commonly traded securities, there are also other types of secondary markets. For example, investment banks and corporate and individual investors buy and sell mutual funds and bonds on secondary markets. Entities such as Fannie Mae and Freddie Mac also purchase mortgages on a secondary market.
How to use Secondary market in a sentence?
- In secondary markets, investors exchange with each other rather than with the issuing entity.
- You should always try to make sure that there are people in the secondary market that may also have need for your product.
- You should be able to accurately assess the goings on in the secondary market so you can take advantage of them.
- Through massive series of independent yet interconnected trades, the secondary market drives the price of securities toward their actual value.
- We made a lot of our sales to the secondary market , which was funny because we did not intend for it to happen that way.
Meaning of Secondary market & Secondary market Definition