The secondary market is what most people actually mean when they say “the stock market” in everyday conversation. It’s where investors trade shares that have already been issued (through a past IPO) — buying from, and selling to, each other, rather than the original company.
Key Feature
The company whose shares are being traded does not receive any money from secondary market activity. If you buy shares of a listed company today, your money goes to the investor who sold you those shares — not to the company itself.
Example
Every time you open your broker app and buy or sell shares of a company like Infosys, HDFC Bank, or Tata Motors on a normal trading day, you’re participating in the secondary market, trading with other investors through the stock exchange.
Related Reading
See the full primary vs secondary market comparison table in What Is the Stock Market? A Complete Beginner’s Guide.