Secondary market provides a platform to the holders of securities through which they can sell or buy securities within themselves. Secondary market provides liquidity to the share holders, bond holders, etc.
Its a market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the Bombay Stock Exchange, National Stock Exchange, NASDAQ, DOW JONES, Etc.
A newly issued IPO will be considered a primary market trade when the shares are first purchased by investors directly from the underwriting investment bank; after that any shares traded will be on the secondary market, between investors themselves. In the primary market prices are often set beforehand, whereas in the secondary market only basic forces like supply and demand determine the price of the security.
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