Question

Do secondary markets add value to society or are they simply a legalized form of gambling?

Answer 1

Secondary market is the market where already issued securities will be traded.

It is very important for an economy, because it gives liquidity for investors who bought it and can be sold at any point of time.

Companies needs money and companies provide employment for the people. When investors who invest in the companies through IPO, they need another channel to sell it, that's where secondary market comes to the resuce. These are highly regulated by the regulators to ensure safety for the investors. Hence, it adds lot to the society.