In the primary market, the issuer sells securities and receives money from it. In the secondary market, they pass from one investor to another, and the issuer does not participate in these transactions — the capital it raised does not change.
The role of the secondary market is key. It provides liquidity: the ability to sell a security before maturity or before reaching the target price. Without it, an investor would be forced to hold the investment for the entire period, which would significantly reduce the attractiveness of primary placements. Additionally, secondary trading establishes the current market price, which serves as a reference point when evaluating a portfolio and preparing new issues.
Practical implication for the Uzbek market: before buying a bond or stock, it makes sense to review the trading history for the security. If there is little secondary trading, the investment will effectively need to be held until maturity, and this should be considered when planning timeframes, even if the security is formally traded on the exchange.