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The two broad categories of participants in the secondary markets are investors and facilitators.

Retail investors are individuals investing their own money to achieve personal financial goals. They are generally not professional investors and can range from those of modest means to wealthy individuals. Most regulations are designed to protect retail investors.

A day trader is a type of retail investor who trades rapidly, typically closing all positions by the end of the trading day, resulting in no open positions at day's end.

While the term accredited investor is primarily used in primary market transactions, it sometimes refers to wealthier or more sophisticated retail investors in the secondary markets, although it has no specific application there.

Institutional investors are large entities such as mutual funds, pension funds, banks, and insurance companies that invest on behalf of their clients. Their investment decisions are often made by professional advisers.

Custodians and trustees are fiduciaries, meaning they have a legal and moral obligation to manage assets in the best interest of the beneficiaries, placing the beneficiaries' interests before their own.

A custodian manages accounts for minors or holds assets in retirement accounts, while a trustee oversees a trust, such as a living trust or pension trust. Both roles are fiduciary in nature.

Investment advisers must register if they (1) give investment advice, (2) do so as a regular part of their business, and (3) receive compensation for it. Agents of investment advisers must also register and pass the Series 65 or Series 66 exam.

Broker-dealers (BDs) perform securities transactions for their own accounts or for customers, earning revenue primarily from transaction fees such as commissions and loads.

Carrying firms (or clearing firms) manage customer accounts and accept funds and securities, while fully disclosed firms introduce customers to clearing firms, which handle the actual custody and transaction processing.

Prime brokers provide custody and other services for institutional clients, allowing them to trade with multiple brokerage houses while maintaining a centralized account for cash and securities.

A transfer agent is responsible for ensuring securities are issued in the correct owner's name, canceling old certificates, issuing new ones, maintaining ownership records, and handling issues related to lost or stolen certificates.

A registrar is a separate firm from the issuer that provides audit and oversight services for transfer agents, maintaining a count of the total number of shares authorized and outstanding.

Clearing agencies act as intermediaries between buyers and sellers, facilitating the receipt and delivery of payments and securities. They ensure smooth transaction settlements and may include organizations like the DTCC.

The DTCC is the world's largest securities depository, providing custody services and automated clearing and settlement services for stock and bond trades, operating in a book-entry format.

The Options Clearing Corporation (OCC) standardizes, guarantees the performance of, and issues options contracts, ensuring uniformity and liquidity in the options market.

The key advantage of a prime brokerage account is that it allows clients to trade with multiple brokerage houses while maintaining a centralized account for all cash and securities, often with specialized services like margin financing and securities lending.

A broker-dealer may act as either a broker or a dealer in a transaction, but they may not act in both capacities on the same transaction.

The third market refers to the trading of listed securities in the over-the-counter (OTC) market, allowing for transactions outside of traditional exchanges.