All the money in stock market (secondary market), what is the usefulness?

Question

When company issue stocks, they try to raise capital to extent their business, apart from that, later, there's new money circulation independently in secondary market. The money collected getting bigger, and most less often diminished.
The point is, what this money in secondary market actually use for, when nobody couldn't use for anything, but just detained in secondary market for trading?
Correct me...


10 pts. for good or detailed answer

Answer 1

The secondary market makes the primary market work. If there was no secondary market, far fewer people/institutions would be interested in the primary market. Why buy a new issue if there is no where to sell it later?