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Secondary Markets

 

Secondary markets are markets, in which securities are traded, but not acquired directly from the issuers. This is why secondary markets differ from primary markets, where securities are bought directly from issuers. In secondary markets securities are traded from one investor to another. All trades in stock exchange are part of a secondary market.

 

Every investor that is investing in stocks, bonds and similar investments does that mostly with help of secondary markets. Only flippers (short-term participants of IPOs) are more related to primary market because they are acquiring their investments in primary and sell in secondary markets. Secondary market provide high liquidity and easier accessibility for every investor. 






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