What is Secondary Markets?

Secondary markets are platforms where existing shares of private companies can be traded between investors. Unlike primary markets (where companies issue new shares), secondary markets trade existing shares between buyers and sellers.Why it matters: Without secondary markets, pre-IPO investments are completely illiquid. You'd have to wait years for an IPO or acquisition to get your money out. Secondary markets provide an exit before those events.How it works:Sellers: Employees, early investors who want liquidity before IPOBuyers: Investors seeking pre-IPO exposurePlatforms: Forge, EquityZen, Carta, SharesPost facilitate tradesPricing: Based on last funding round, supply/demand, and market conditionsConsiderations: Higher minimums ($10K-$50K+), ROFR (right of first refusal) restrictions, and company approval may be required.Growth of secondary markets: The secondary market for private company shares has expanded rapidly, growing from under $10 billion in annual volume a decade ago to well over $100 billion today. Platforms such as Forge Global, EquityZen, and Linqto have lowered barriers by offering fractional access, streamlined compliance, and digital settlement. For pre-IPO investors, secondary markets are essential because they provide a liquidity option during what would otherwise be a multi-year lock-up. They also enable price discovery for private companies, giving buyers and sellers real-time market signals rather than relying solely on stale funding round valuations.