Simple English definitions for legal terms
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Secondary trading refers to the buying and selling of securities (like stocks or bonds) between members of the public, without involving the company that issued the securities or the underwriter who helped sell them. It's different from primary trading, which is when the securities are first sold to the public. Short-term trading is when people buy and sell securities quickly to make a profit from changes in the market price. Day trading is a type of short-term trading where people buy and sell securities on the same day, often using the internet.
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.