What are secondary markets in relation to bonds?

Secondary markets in relation to bonds refer to platforms where existing bonds can be resold or traded after their initial issuance. When bonds are first issued, they enter the primary market; it's within the primary market that investors buy bonds directly from the issuer. Once purchased, these bonds may change hands multiple times, and it is in the secondary market that these transactions occur.

Investors often turn to the secondary market to sell their bonds before maturity, allowing for increased liquidity. This provides flexibility for bondholders, as it enables them to realize gains or cut losses based on current market conditions or personal financial strategies.

The other options do not accurately describe secondary markets. Markets for new bond issues pertain to the primary market, not the secondary one. Government-regulated bond markets may include both primary and secondary activities, but the definition is not specific to secondary markets. Online trading platforms can facilitate secondary market transactions, yet they are a means of trading rather than defining the market itself. Therefore, defining secondary markets specifically as platforms for reselling existing bonds encapsulates their essence accurately.