If you purchase a share of stock from your friend who initially purchased the stock three years ago, your purchase of the stock represents a transaction in the secondary financial market.

Question

Quizplus · Accepted Answer

The secondary financial market is where previously issued securities are traded among investors, which includes buying a share of stock from an individual who already owns it. In contrast, the primary financial market is where new securities are issued and sold for the first time to the public.

If You Purchase a Share of Stock from Your Friend