The transaction proceeds normally go to the seller rather than the original issuer. This market helps investors resell their holdings.
Secondary market
In a nutshell
The secondary market allows investors to buy and sell securities that have already been issued.
On this page
Explained simply
A practical example
Hypothetical example: a saver sells a bond to another investor before maturity; this is a secondary-market transaction.
Further reading
Source: AMF — Financial markets.
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What this means
The buyer pays the seller, subject to fees; the company receives no new subscription.
Educational scenarios. Amounts and rates are fictional, not current market conditions.