Secondary stocks

Secondary stocks

Stocks with smaller market capitalization, less quality and more risk than blue chip issues that behave differently than larger corporations' stocks.

Secondary Stock

Any stock issued by a publicly-traded company other than a blue chip company. Secondary stocks are issued by less well-established and less well-known companies; as a result, they carry higher risk than blue chip stocks. However, they can have higher growth potential. Secondary stocks tend to have a smaller market capitalization, often under $1 billion.