Secondary Market

Wikipedia, the free on-line encyclopedia, has:

The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. Alternatively, secondary market can refer to the market for any kind of used goods. The market that exists in a new security just after the new issue, is often referred to as the aftermarket. Once a newly issued stock is listed on a stock exchange, investors and speculators can easily trade on the exchange, as market makers provide bids and offers in the new stock. In the secondary market, securities are sold by and transferred from one investor or speculator to another. It is therefore important that the secondary market be highly liquid (originally, the only way to create this liquidity was for investors and speculators to meet at a fixed place regularly; this is how stock exchanges originated, see History of the Stock Exchange).

Here's the problem we have now: Trust has gone out of the system and investors don't trust one another. Lack of trust slows business to a crawl and acts like a tax on revenue. If we can restore trust (or confidence) to the system we can begin to put Humpty Dumpty back up on the wall and things will get better.

Entrepreneurs don't have to be financial experts, or sophisticated investors, but they need to know the tools to talk about their own investments and to understand what is said in the media about what is going on in the financial markets.

If you;'re interested in this topic, read the full Wikipedia article. And post a comment. I'd love to hear what you have to say.

Entrepreneurship informs all my professional activities. For entrepreneurial real estate go to www.yourstopforrealestate.com/blog and for entrepreneurial writing and publishing to to www.kearneymusicschoolmurders.blogspot.com