Secondary Market

The secondary market, often associated with the traditional stock market, comes into play after financial instruments like bonds, stocks, and derivatives are initially sold on the primary market. In the secondary market, investors exchange assets they already own directly with one another, rather than with an issuing entity, as in the primary market. The term “secondary market” can also be applied in a broader context, referring to any marketplace used to exchange goods or assets for purposes other than their primary use.