What is a secondary market?

A secondary market describes a place where an investor can purchase and sell a security after its issue date and before its maturity date (if it has one). Some secondary markets such as the Toronto Stock Exchange are large, organized and well established with numerous market participants, while others are very small with only one market maker. The secondary market, if any, for PPNs is typically comprised of the issuing institution. The financial institution that issues a PPN also is the secondary market and market maker, but they are not under any obligation to do so. PPNs are not listed nor do they trade on an organized stock exchange. Investors should visit the issuer’s website for a copy of the PPNs Information Statement and details such as

  1. the most recent bid price for the notes and any applicable Early Redemption Fees, and
  2. the last available measure that would be used to determine the Variable Interest, if any.

Related Questions

Investment considerations of PPNs