The transactions involving the securities issued in the primary market take place in the secondary market. Thus secondary market deals in securities previously issued in the primary market and thereby provide liquidity to the investors. Investors can either buy securities previously issued or sell securities held by them in the secondary market on a continuous basis. Due to this, the volumes of transactions taking place in the secondary market are far greater than those taking place in the primary market. Except for the capital market, the other markets present in the financial system either do not have a secondary market or either or their operations in the same are negligible. The secondary market transactions of the capital markets at the stock exchanges. All securities that are issued in primary market will have to be listed on the stock exchanges to enable trading activity.
The secondary market helps in undertaking ‘Maturity Intermediation’, by bringing together savers and users with conflicting maturity targets. The secondary market, also known as the aftermarket, is the financial market where previously issued securities and financial instruments such as stock, bonds, options, and futures are bought and sold
