secondary markets

Secondary markets are platforms where previously issued financial assets, like stocks and bonds, are bought and sold among investors. Unlike primary markets, where securities are created and sold for the first time, secondary markets provide liquidity, allowing investors to trade these assets after their initial sale. This trading can happen on exchanges, like the New York Stock Exchange, or over-the-counter. The prices in secondary markets fluctuate based on supply and demand, reflecting the current value of the asset based on market conditions and investor sentiment. This system enables investors to realize gains or cut losses on their investments.