Article

Secondary Market
June 07 , 2012

The market where one investor buys shares of a company from another, in return for cash, is called Secondary Market. Here, the company itself is not involved; and its balance sheet is not affected.

Secondary Market is distinct from the Primary Market, where a company issues fresh shares to investors in return for cash. The Secondary Market therefore does not affect the company's balance sheet like the Primary Market does. From an investor's point of view, one market is not 'safer' or 'better' than the other.

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