Legal Definitions - secondary trading

Secondary trading refers to the buying and selling of securities, such as stocks or bonds, between members of the public in the market. This type of trading does not involve the issuer or underwriter of the securities.

For example, if you buy shares of Apple stock from another individual through a brokerage firm, that would be considered secondary trading. The transaction does not involve Apple as the issuer or an underwriter.

Another example of secondary trading is when an investor sells their shares of a mutual fund to another investor on the open market. The mutual fund company is not involved in this transaction.

Overall, secondary trading allows investors to buy and sell securities on the open market without involving the original issuer or underwriter.