What Are Secondary Markets

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Secondary Market transactions are referred to those transactions where one investor buys shares from another investor at the prevailing market price or at whatever price both the buyer and seller agree upon.

The secondary market is where investors buy and sell securities they already own. Before stocks are issued, secondary markets allow stock prices to develop based on supply and demand

The national exchanges, such as the New York Stock Exchange(NYSE), National Stock Exchange(NSE) and the NASDAQ are Secondary Markets.