Secondary Trading
The buying and selling of securities after their initial issuance, providing liquidity and price discovery for investors seeking to exit positions.
Full Definition
Secondary trading occurs when investors trade previously issued securities among themselves, rather than buying directly from the issuer. For tokenized securities, secondary markets can operate 24/7 on blockchain-based exchanges, with smart contracts automatically enforcing transfer restrictions and compliance. Sails.to's broker network facilitates compliant secondary trading, matching buyers with sellers while ensuring all parties meet eligibility requirements.
Why It Matters
Secondary trading is where liquidity happens. Primary offerings let you buy in; secondary markets let you exit. Without secondary trading, your investment is locked until the company goes public, gets acquired, or liquidates—which might be never.
Sails.to enables compliant secondary trading through our broker network. The 0.5% trading fee is split ⅓ to the platform and ⅔ to the broker facilitating the trade. Our smart contracts automatically verify that both buyer and seller are KYC-verified and eligible for the security being traded.