The secondary market refers to the financial market where previously issued securities, such as stocks, bonds, and other financial instruments, are bought and sold. Unlike the primary market, where securities are created and sold to investors for the first time directly from the issuer, the secondary market involves transactions between investors. In this market, investors can trade their existing securities among each other, providing liquidity and enabling price discovery based on supply and demand dynamics. The secondary market is crucial for the functioning of financial markets, as it offers investors the opportunity to resell investments, adjust their portfolios, and gauge market conditions. Common venues for secondary market transactions include stock exchanges, like the New York Stock Exchange (NYSE) and NASDAQ, as well as over-the-counter (OTC) markets.
The fintech landscape in Europe is undergoing a transformation, and it revolves around the buzzworthy trend of secondary share sales. Companies like Revolut, Monzo, and Moneybox have spearheaded this movement…