• Primary Bond Market

    For corporations and municipalities, issuing a bond is a lot like an initial public offering (IPO). An investment firm purchases bonds from the issuer and then works with other investment firms to offer the bonds for sale to the public.

  • Secondary Bond Market

    In the secondary market, bonds are traded over-the-counter and in the bond trading rooms of stock exchanges and brokerage firms.

  • Bond Markups

    Though you will not typically pay a sales charge when you purchase bonds in the primary market, all bond trades in the secondary market incur sales charges. Sales charges are computed differently for bonds than they are for stocks.

The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.