The re-sale of stock some time after it has been sold by the issuing company. The security may be listed or unlisted. The trading in existing securities as opposed to new issues. Secondary market trades take place on exchanges or over the counter. Usually, settlement occurs three business days from the trade date.
Cash transactions settle same day.
Government bonds and options settle the next business day. The amount of stock an individual has sold short and has not covered, as of a particular date. When selling short, a customer is selling securities which he does not own in anticipation of the market price declining. He then plans to purchase the stock thereby covering his short position at a lower price, thereby making a profit. Since the customer has sold stock which she does not own, the brokerage firm must lend him the stock.