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What is the secondary market?

When buying stocks, what is the primary market?

What is the secondary market?

Hello, the primary stock market is a primary market and a stock issuance market. In this market, investors can subscribe for stocks issued by the company.

Through the primary market, the issuer raises the funds needed by the company, and investors purchase the company's shares and become shareholders of the company, realizing the process of converting savings into capital.

Secondary Market After bonds and stocks are first sold, they can be traded in the secondary market. The secondary market can also be divided into two types: auction market and broker market: the stocks of most large U.S. companies are traded on the auction market. For example

New York Stock Exchange, American Stock Exchange) and some regional exchanges.

Among them, the New York Stock Exchange is an important auction venue. It accounts for 85% of all auction markets in the United States. It doesn’t matter if you don’t understand the above. Ordinary investors can only enter the secondary market but not the secondary market.

In the primary market, only venture capital, institutions, funds and other investment companies can enter, while ordinary investors can enter indirectly through PE funds (private equity investment).

When new shares are issued, subscription already belongs to the secondary market.

Risk disclosure: This information does not constitute any investment advice. Investors should not use this information to replace their independent judgment or make decisions based solely on this information. It does not constitute any buying or selling operation and does not guarantee any returns.

If you operate by yourself, please pay attention to position control and risk control.