Secondary Market

The secondary market, also called aftermarket, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. Another frequent usage of "secondary market" is to refer to loans which are sold by a mortgage bank to investors such as Fannie Mae and Freddie Mac.

The term "secondary market" is also used to refer to the market for any used goods or assets, or an alternative use for an existing product or asset where the customer base is the second market (for example, corn has been traditionally used primarily for food production and feedstock, but a "second" or "third" market has developed for use in ethanol production).

With primary issuances of securities or financial instruments, or the primary market, investors purchase these securities directly from issuers such as corporations issuing shares in an IPO or private placement, or directly from the federal government in the case of treasuries. After the initial issuance, investors can purchase from other investors in the secondary market.

The secondary market for a variety of assets can vary from loans to stocks, from fragmented to centralized, and from illiquid to very liquid. The major stock exchanges are the most visible example of liquid secondary markets - in this case, for stocks of publicly traded companies. Exchanges such as the New York Stock Exchange, London Stock Exchange and Nasdaq provide a centralized, liquid secondary market for the investors who own stocks that trade on those exchanges. Most bonds and structured products trade “over the counter,” or by phoning the bond desk of one’s broker-dealer. Loans sometimes trade online using a Loan Exchange.

Read more about Secondary Market:  Function, Related Usage, Private Secondary Markets

Other articles related to "secondary market, secondary, secondary markets, markets":

Mongolian Stock Exchange - Business History - Secondary Market
... Secondary market volume indicators Year Stocks Bonds Ct Cap Val Vol Idx Gov Corp 474. 27.1 1.8 6.8 88.9 n/a n/a 458. 25.9 6.0 24.8 152.9 0.20 n/a 436. 53.2 15.0 33.7 360.1 n ... Source Secondary trading finally began on 28 August 1995, open to both domestic and international investors ... However, the secondary market quickly exposed the weakness of many of the newly privatised companies share prices remained depressed throughout 1996 ...
Private Secondary Markets
... compliance and reporting obligations enacted in the Sarbanes-Oxley Act of 2002, private secondary markets began to emerge, like SecondMarket ... These markets are generally only available to institutional or accredited investors and allow trading of unregistered and private company securities ... In private equity, the secondary market (also often called private equity secondaries or secondaries) refers to the buying and selling of pre-existing ...
Private Equity Secondary Market - References
... van Tichelen, Arnaud - A complete guide to the PE secondary market Private Equity secondary market valuation analysis Cannon, Vincent T ... Secondary Markets in Private Equity and the Future of U.S ... Capital Markets, Harvard Law School ...
Seller Financing - Secondary Market
... There is a secondary market for seller financed debt instruments ... Many companies and investors look to purchase properly structured debt instruments as investments ...
Alp Invest Partners - Secondary Investments
... AlpInvest's secondary investments group focuses on the purchase of existing portfolios of private equity assets ... In the secondary market, AlpInvest operates as an independent investment group with a large dedicated team, comparable to other leading secondary firms and is one of ... AlpInvest's secondary investments include purchases of limited partnership interests, spin-outs of captive private equity groups, stapled secondary ...

Famous quotes containing the words market and/or secondary:

    To throw obstacles in the way of a complete education is like putting out the eyes; to deny the rights of property is like cutting off the hands. To refuse political equality is like robbing the ostracized of all self-respect, of credit in the market place, of recompense in the world of work, of a voice in choosing those who make and administer the law, a choice in the jury before whom they are tried, and in the judge who decides their punishment.
    Elizabeth Cady Stanton (1815–1902)

    Words are always getting conventionalized to some secondary meaning. It is one of the works of poetry to take the truants in custody and bring them back to their right senses.
    William Butler Yeats (1865–1939)