Angie · learn
Secondary market
Trading between investors, which is what an exchange is. The company receives nothing when its shares change hands here.
Updated 2026-09-05
The secondary market is investors trading with each other. An exchange is a secondary market, and so is every over-the-counter venue. The company whose name is on the share receives nothing when it trades.
That fact is worth sitting with, because it clarifies what a share price is. It is not a payment to the business and not a measure of the business. It is what two strangers most recently agreed on, which is exactly why estimating intrinsic value separately is worth doing.
See also
- Primary market — Where securities are sold for the first time and the money reaches the company. Every share trades here exactly once.
- Market maker — A firm that continuously quotes both a buy and a sell price, so there is always someone on the other side. It earns the spread for taking that risk.
- Bid-ask spread — The gap between the highest price a buyer will pay and the lowest a seller will accept. It is the cost of trading, and you pay half of it on the way in and half on the way out.
Educational content, not investment advice. Angie explains how a valuation is built so you can judge it yourself. What you do with that is your call.
