# Primary vs Secondary Market

*Markets & Instruments — Finicade finance glossary*

The primary market is where securities are first sold and the issuer raises money; the secondary market is where investors trade them among themselves.

The primary market is where securities are first sold and the company raises money (an IPO, a bond issue); the secondary market is where investors then trade them among themselves. Most daily trading is secondary.

**Also known as:** primary market, secondary market

**Related terms:** [IPO (Initial Public Offering)](https://finicade.com/glossary/ipo), [Market Maker](https://finicade.com/glossary/market-maker), [Liquidity](https://finicade.com/glossary/liquidity)

**Taught in:** Charter Climb — Market Organization & Indexes

Source: https://finicade.com/glossary/primary-and-secondary-markets