The secondary market is the marketplace where existing financial instruments – such as stocks, bonds, or other securities – are traded among investors. In this market, the original issuer of the security is not involved in the transaction. Instead, buyers purchase from existing holders.
This market provides liquidity, allowing investors to enter or exit positions more easily. Prices in the secondary market are determined by supply and demand. Common venues for secondary trading include stock exchanges (like the NYSE) and over-the-counter (OTC) markets.
