What are secondary markets?

Secondary markets are platforms where previously issued financial instruments, such as stocks and bonds, are bought and sold among investors. Unlike primary markets, where securities are created and sold for the first time, secondary markets facilitate the trading of existing assets, allowing investors to exchange ownership without involving the issuing companies. These markets provide liquidity, enabling investors to enter and exit positions easily. Examples include stock exchanges like the New York Stock Exchange (NYSE) and over-the-counter (OTC) markets.