Secondary Market

byPaytm Editorial TeamFebruary 6, 2026

Meaning

Allows investors to trade existing financial instruments (stocks, bonds), ensuring essential liquidity after initial sale.

Definition

Financial marketplace where previously issued securities are bought and sold between investors, bypassing the original issuer.

How It Works

Investors exchange existing assets among themselves. Trades happen on exchanges or over-the-counter platforms.

Key Characteristics

Ensures liquidity for securities and establishes market price via supply and demand.

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