Sekundäärimarkkina

Sekundäärimarkkina, also known as the secondary market, refers to the trading of previously issued securities. Unlike the primary market, where new securities are created and sold by issuers to investors, the secondary market facilitates the buying and selling of these already existing financial instruments between investors. This market plays a crucial role in providing liquidity to the financial system, allowing investors to sell their holdings and access cash.

The most well-known examples of secondary markets are stock exchanges like the New York Stock Exchange or the Nasdaq. Here, investors can buy and sell shares of publicly traded companies. Bonds are also traded on secondary markets, as are other financial instruments such as derivatives, options, and futures. The prices of securities in the secondary market are determined by supply and demand, reflecting investor sentiment, company performance, and broader economic conditions.

The existence of a robust secondary market is essential for the primary market to function effectively. Investors are more willing to purchase newly issued securities in the primary market if they know they can later sell them in the secondary market. This continuous cycle of issuance and trading underpins the efficient allocation of capital in the economy. Regulatory bodies oversee secondary markets to ensure fair trading practices and market integrity.