Secondary Market

A securities market such as a stock exchange or an over-the-counter market where existing securities of corporate bodies and governments are bought and sold. Such securities has been previously issued and sold in the primary market by the issuing entity. The secondary market allows holders of securities to sell, and those desirous of buying existing securities to do so whenever they wish to. Thus, unlike the primal market where proceeds of sale of securities go to the issuer, in the secondary market, proceeds go to the selling investor The secondary market, therefore, provides liquidity to investors by ensuring easy convertibility of securities into cash.