If you purchase stock from another investor, such as your cousin Sam, then you are buying stock on the primary market.

Question

Quizplus · Accepted Answer

If you purchase stock from another investor, you are buying on the secondary market, as the stock has already been issued and is being traded among investors. The primary market is where a company initially issues and sells its stock to investors, such as through an initial public offering (IPO).

If You Purchase Stock from Another Investor, Such as Your