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Glossary · PSX term

Secondary market.

The secondary market is where investors trade existing shares with each other after they are issued.

Definition

The PSX is a secondary market, where buying and selling does not raise new money for the company, unlike an IPO in the primary market. It provides liquidity so investors can enter and exit positions.

Worked example

Buying HBL shares from another investor on the PSX is a secondary-market trade.

Related on PSX Clarity

Term
Initial Public Offering (IPO)
Term
Liquidity
Term
Listing

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