What typically does NOT occur in a secondary market?

In the context of secondary markets, issuing new stock is not a typical activity. The secondary market primarily involves the buying and selling of existing securities among investors. This is where shares of a company, or bonds, are traded after having already been issued in the primary market.

In the primary market, companies initially offer their shares to the public, which is the phase where new stocks are created and sold for the first time to raise capital. Once these securities are issued, they enter the secondary market, where investors trade them among themselves.

The other activities mentioned, such as buying and selling existing securities, trading fixed-income instruments, and engaging in market-making activities, are intrinsic to the functions of a secondary market. This environment allows for liquidity and price discovery, enabling investors to enter and exit positions in various financial instruments. Understanding the distinction between the primary and secondary markets is key to grasping how financial markets operate.