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What is the difference between buying a bond in the primary market and in the secondary market?

April 26, 2017Bond buying difference market primary Secondary

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What is the difference between buying a bond in the primary market and in the secondary market?

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The primary market refers to the purchase of bonds when they are first issued. The secondary market refers to the purchase and sale of bonds after they have been issued. There is no exchange (like the New York Stock Exchange) for municipal bonds. Purchases and sales are made “over the counter” by municipal broker-dealers.