The secondary market offers a liquidity option for investors who may need cash, are looking to change their portfolio allocation, or re-balance their holdings to return to a target allocation.

As a result, it may lead to missed opportunities or financial losses. Primary vs. Secondary Markets The two types of markets for securities, primary and secondary markets, differ in various ways.

This sector tends to perform well when the economy is strong but falters when the economy is weak. As you might expect, concerns about tariffs have affected consumer discretionary stocks in 2025.