Secondary market
Also called: aftermarket
The part of the market where investors buy and sell existing shares with each other, usually on a stock exchange.
Almost all everyday trading happens in the secondary market. When you buy a listed share through your broker, you usually buy it from another investor, and your money goes to that investor, not to the company.
The secondary market gives shares a price and lets investors sell when they want, which is what makes them willing to buy in the primary market in the first place.
Learn more in these lessons
- Primary and secondary marketsWhat is the difference between the primary and secondary market?
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