Investing term
What is Secondary market?
Where investors trade existing shares with each other. Cash flows between investors, not to the company.
The secondary market is where investors trade existing securities among themselves — the everyday stock market. The cash flows between buyer and seller, not to the company that originally issued the shares. It's distinct from the primary market (IPOs), where the company itself raises money. When you buy a stock through your broker, you're almost always in the secondary market.
For example
You buy 10 shares of an established company; your money goes to whoever sold them, not the company — that's the secondary market at work.
Secondary market is taught hands-on in Stage 5 — How Markets Work Globally.
See the lesson →