PDSnet Glossary

Term

Categories

Introductory Technical Fundamental Economics Opinion Sectors International Regulatory Other Markets

Versions

Name	synonyms = 1, variations = 2, abbreviations = 3

Publish: (0 = no, 1 = yes)

Definition

A secondary share is a share which is well-managed and has good markets, but does not have the financial muscle, history of profits or diversity of the blue-chips. These are sometimes referred to as "growth" stocks, because they have the potential to become blue-chips at some future stage. You should expect a secondary share to double its market price within the next 2 to 3 years, and for this reason, they form an important middle area in your portfolio between blue-chips and speculative shares. Some secondaries are included in the mid-cap index and others in the upper end of the small cap index. They may not yet be paying a steady annual dividend, but they are on their way towards that objective.

Edit Glossary Term