Which market is where most stocks are purchased?

In financial markets, the secondary market is where most stocks are bought and sold after they have been issued in the primary market. The secondary market is critical because it provides liquidity to investors; they can sell their shares to other investors rather than hold them indefinitely.

When a company goes public, its shares are initially sold in the primary market, allowing the issuer to raise capital directly from investors. After this initial sale, the shares enter the secondary market, where transactions occur between investors without the involvement of the issuing company. This market includes well-known exchanges like the New York Stock Exchange and NASDAQ.

By facilitating the trading of existing shares, the secondary market plays a vital role in determining the ongoing price of a stock based on supply and demand, investor sentiment, and market conditions. This dynamic makes it essential for investors looking to buy or sell shares.