Secondary Stock

Filed Under »
Dictionary Says

Definition of 'Secondary Stock'

A stock that is considered riskier than blue chips because it has a smaller market capitalization. A secondary stock can relate to any type of company, in any industry. The primary definer of a secondary stock is the company's market cap, with any company's equity shares trading under a certain "large cap" level being considered a secondary stock.
Investopedia Says

Investopedia explains 'Secondary Stock'

Secondary stocks are more commonly referred to as mid-, small- or micro-cap stocks, depending upon their market capitalization. While market capitalization is a definite driver of a stock's risk level, most view large-cap stock as less risky than secondary stocks, due primarily to their market cap. Secondary stocks however often times can be less volatile than large cap stocks, thus all else held equal, being a less "risky" investment than a large cap.

Related Definitions

Search results for

'Secondary Stock'

  • This Secondary Offering Is Worth a Look

    http://stocks.investopedia.com/stock-analysis/moneyshow/ThisSecondaryOfferingIsWorthaLook.aspx
    ... While itÂ’s common for a secondary offering to put temporary pressure on a stock,
    I think TWER is taking this step because it sees very attractive ...

  • A Look At Primary And Secondary Markets

    http://www.investopedia.com/articles/02/101102.asp
    ... Knowing the functions of the primary and secondary markets is key to understanding
    how stocks trade. Without them, the stock market would be much harder to ...

  • When you buy a stock in a company, does it necessarily mean that ...

    http://www.investopedia.com/ask/answers/167.asp
    ... from another shareholder on the secondary market (stock market), and this other
    shareholder probably believes that the price of the stock will decline. ...

  • Series 7 Study Guide - Securities Transactions - Settling ...

    http://www.investopedia.com/exam-guide/series-7/securities-transactions/settling-secondary-market.asp
    ... In the secondary market, securities transactions can be settled in other ways:
    Regular-way (RW ... That is, if you buy a stock for a client on a Tuesday, you must ...

  • Why are most bonds traded on the secondary market "over the ...

    http://www.investopedia.com/ask/answers/09/bond-over-the-counter.asp
    ... However, unlike stocks, most bonds are not traded in the secondary market via ... Stocks
    have only two types, common stock or preferred stock, and are limited to ...

  • Series 7 Study Guide - Securities Markets - Secondary Offerings ...

    http://www.investopedia.com/exam-guide/series-7/securities-markets/secondary-shelf-distribution.asp
    ... A secondary offering is done at the prevailing market price and must be done without ...
    A block is usually defined as at least 10,000 shares of stock or $200,000 ...

  • What is dilutive stock?

    http://www.investopedia.com/ask/answers/06/dilutivestock.asp
    ... consider the secondary offering made by Google Inc. in the fall of 2005. The company
    decided to issue more than 14 million shares of common stock to raise ...

  • Why do share prices fall after a company has a secondary offering?

    http://www.investopedia.com/ask/answers/07/secondary_offering.asp
    ... or shares outstanding, through a secondary offering. Let's start from the beginning.
    A company goes public with an initial public offering (IPO) of stock. ...

  • Why Do Companies Care About Their Stock Prices?

    http://www.investopedia.com/articles/basics/03/020703.asp
    ... Why then does a company, or more specifically its management, care about a stock's
    performance in the secondary market when this company has already received ...

  • Stocks Basics: How Stocks Trade | Investopedia

    http://www.investopedia.com/university/stocks/stocks3.asp
    ... the issuing-companies. The secondary market is what people are referring
    to when they talk about the stock market. It is important ...

Related Articles

Partner Links