Final answer:
Securities that are traded after their initial issue in the primary market are traded in the secondary market. This market is essential for providing liquidity and includes stock exchanges like NYSE and NASDAQ, where securities are traded among investors.
Step-by-step explanation:
The market where already issued securities are traded again is known as the secondary market. This is distinct from the primary market, where securities are initially issued. The secondary market is crucial for providing liquidity, allowing investors to buy and sell securities such as stocks and bonds. Unlike the primary market, investors in the secondary market can trade with other investors without going back to the original issuer of the security. When discussing how long money is loaned, we refer to markets as either money markets (short-term) or capital markets (long-term).
Stock exchanges are examples of secondary markets, where securities are traded among investors. Major stock exchanges provide a platform to facilitate these trades, examples of which include the New York Stock Exchange (NYSE) and the NASDAQ. Supporting the functioning of secondary markets, these exchanges help in the creation of a dynamic financial environment that allows for efficient allocation of financial resources.