Which market provides a venue for buying and selling existing stocks?

The secondary market is where existing stocks are bought and sold. It operates after the primary market, where new stocks are issued for the first time. In the secondary market, investors trade shares that they have already purchased, which helps establish the stock's market price based on supply and demand among investors.

This market plays a crucial role in providing liquidity, allowing investors to convert their stocks into cash easily. It also gives new investors an opportunity to buy shares from sellers, thereby facilitating the ongoing exchange of ownership without the company needing to issue additional stock. While other markets like the primary market deal with new issues and the equity market refers more broadly to all stock transactions, it is the secondary market that specifically addresses the trading of existing stocks. Similarly, the derivatives market focuses on contracts based on an asset's value rather than direct stock trading.