A research produced by
Secondary trading means investors buying and selling shares in funds amongst themselves rather than via the fund manager. To use a simplistic analogy, secondary trading is like buying and selling a cloakroom ticket. The coat in the cloakroom does not change hands, the ticket does. The cloakroom ticket gets bought and sold even when the cloakroom is closed. The value of the ticket is whatever the buyer and seller deem it to be, rather than someone else’s view of what the coat is worth. The last person to hold the ticket ultimately gets the coat.
Source : INREV
