Secondary Market Definition
Learn the definition of secondary market and other ETF terminology from the etf.com glossary.
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The Secondary Market for ETFs is the dynamic arena where investors actively buy and sell ETF shares after the initial issuance in the primary market. In this realm, individual investors, institutional traders and market makers engage in transactions based on prevailing market conditions and participant demand. The secondary market is vital for price discovery and liquidity, providing investors with the flexibility to trade ETF shares throughout the trading day at market-determined prices. As a robust and accessible marketplace, the secondary market enhances the overall tradability and efficiency of ETFs, ensuring their relevance and effectiveness in meeting investor objectives.