What does secondary market mean

Secondary market

Capital market

The secondary market is the part of the capital market on which circulating securities are traded (= circulation, securities, circulation market). In Germany there are different secondary markets, e.g. the official market, the regulated market and the new market of Deutsche Börse AG in Frankfurt a.M. The secondary market fulfills the task of the exchange of capital between investors as well as the valuation and pricing function for securities.

(Secondary Market, Circulation Market, Circulation Market) Name for the market (usually stock exchange) on which the circulating securities are traded. Contrast: primary market.

Stock exchange

1. Also: circulation, circulation market. Secondarymarket. The market in securities in circulation; Market on which banks conduct securities trading as proprietary and customer transactions. The securities traded here were issued at an earlier point in time. Investors who want to sell the securities they have acquired are, as providers, through the intermediary of banks, compared to other investors who intend to acquire these securities as buyers. Purchases and sales on the secondary market do not affect the liquidity position of the companies whose securities are traded there; Proceeds from the sale do not flow to the company, but to the selling investors. Ggs .: primary market.
2. Market for trading in country claims and loans, for securitized and unsecuritized claims on debtor countries. Plays a role in assessing the creditworthiness of countries whose debt securities are traded at more or less high discounts to face value.
3. Market for trading in bank loans. These are passed on to other institutions by the banks that have assigned them. other banks, sometimes special credit institutions, but also other (financial) investors - sold at a discount from the nominal amount. For banks this means balance sheet or Equity relief and creates scope for further lending. Truesale, problem loan sale.
4. Market for bills of exchange with an impeccable credit rating, which are mainly traded among banks; thus a sub-market of the bank money market.
5. Mainly secondary market also factoring and forfait leasing, including types of accounts receivable.
6.1. w. Secondary market also asset-backed securities.

Securities market on which values ​​in circulation are traded. Stock exchanges are: secondary markets. Contrast: emissions market (emission).

(Stock market). The secondary market is the market on which securities that have already been issued are traded. For example, shares are traded on a stock exchange after they have been issued. Contrast to primary market.

Circulating market for already issued securities that are traded on the stock exchanges.
See also: primary market

(Circulation market). Market on which securities already in circulation are traded. The most important pages are the relevant stock exchanges. Contrast: primary market.

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