What term describes the subsequent trading of previously issued securities?

The term that describes the subsequent trading of previously issued securities is the secondary market. In the secondary market, investors buy and sell securities that have already been issued, allowing for liquidity and the ability to transfer ownership among investors without involving the issuing companies directly. This market is essential for providing price discovery and enabling investors to adjust their portfolios based on changing market conditions or personal financial goals.

In contrast, the primary market is where securities are created and sold for the first time, such as during an initial public offering (IPO). The equity market typically refers specifically to the buying and selling of stocks, while the debt market deals with the issuance and trading of debt securities like bonds. Therefore, the secondary market encompasses a broader range of previously issued financial instruments beyond just equities or debts, making it key for ongoing investment activity.