From the book website for Economics Principles in Action by O'sullivan:

Stocks are traded on secondary markets called stock exchanges, which in the United States includes the NYSE and Nasdaq.

  1. I thought stocks are traded on primary markets, and previously bought stocks on secondary markets. So I wonder if the quote is right or I am?
  2. Are NYSE and Nasdaq secondary markets or primary?


1 Answer 1


NYSE and Nasdaq are secondary markets where stocks are bought or sold.
The process of creating new stocks via IPO or private placements etc are called Private Market.

  • Thanks! (1) By "creating new stocks", you mean the first issue of the new stocks? (2) NYSE and Nasdaq are secondary, in the sense that stocks that are sold there were previously bought from primary markets? Are the primary markets and the "private markets" the same concept?
    – Tim
    Commented May 20, 2012 at 3:06
  • 1
    Yes first issues via IPO where either new stocks are created or Owner divests some of his stock. After this it becomes secondary where it keeps changing hands. Private markets I am not to sure, the term is used in varying contexts.
    – Dheer
    Commented May 20, 2012 at 6:01
  • Thanks! What are some examples of primary markets, just like NYSE being an example of secondary markets?
    – Tim
    Commented May 20, 2012 at 21:48
  • 1
    Another example of primary market: When government try to raise money, they do it by issuing bonds. Those bonds are issued on the primary market (mostly under the form of auctions). Then they are exchanged on the secondary market.
    – Mesop
    Commented May 22, 2012 at 14:57

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