A secondary market is a place where securities like stocks, bonds, ETFs, etc., are traded on a day-to-day basis. These products are first issued in the primary market via IPO and then moved to the secondary market, where it is traded among the public. The secondary market is also known as the After Issue Market.
It plays a complementary role in the financial system by providing liquidity to the investors.While the primary market is where newly issued securities are bought and sold for the first time, the secondary market is where previously issued securities are traded among investors.
The distinction of how differently as well as how interdependently primary as and secondary markets work is given in the blog.