what do you mean by secondary market

A secondary market is a market where investors buy and sell securities from other investors, rather than from the issuing companies themselves. Transactions that occur on the secondary market are termed secondary simply because they are one step removed from the transaction that originally created the securities in question. The secondary market is also referred to as the stock market. The New York Stock Exchange (NYSE), London Stock Exchange, and Nasdaq are examples of secondary markets. Small investors have a much better chance of trading securities on the secondary market since they are excluded from IPOs. Anyone can purchase securities on the secondary market as long as they are willing to pay the asking price per share. The secondary market has two different categories: the auction and the dealer markets. The auction market is home to the open outcry system where buyers and sellers congregate in one location and announce the prices at which they are willing to buy and sell their securities. The dealer market is where traders buy and sell securities through a dealer, who acts as a middleman between buyers and sellers.