Generally speaking, the secondary market is the circulation market, that is, the place where stocks, bonds and other securities are traded. Whether it is the domestic Shanghai Stock Exchange, Shenzhen Stock Exchange, new york Stock Exchange and Nasdaq Stock Exchange, it belongs to the secondary market.

Compared with the secondary market, there is also the primary market. When a company issues stocks or bonds for the first time, most of these transactions are conducted in the primary market. If the initial investors want to realize their securities, they can only choose to trade in the secondary market. It can be seen that the secondary market can provide liquidity for securities.

judging from the composition of the secondary market, there are mainly three types of participants. The first category is enterprises, which can achieve financing through the secondary market. The second category is institutional and individual investors, in which institutions include Public Offering of Fund, private equity funds, hedge funds and other institutional investors. The third category is the regulatory agency, which is responsible for maintaining the order of the entire secondary market and ensuring that the market can proceed steadily.