inactive security

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Inactive Security

An infrequently traded bond or stock. Inactive securities are usually traded in small batches, approximately five shares at a time. Inactive securities are fairly illiquid and may be difficult to sell in a downturn. Their prices are also volatile because a small change in demand can greatly affect the price. Inactive securities are sometimes called cabinet securities because they are kept in cabinets on the trading floor until they are needed. See also: Cabinet crowd, Inactive post.

inactive security

A security that has a relatively low trading volume. A particularly inactive security may not trade for days or weeks at a time, although bid and ask quotations for it are generally available. Inactive securities are often difficult to buy or sell in any significant quantity without affecting the price.
References in periodicals archive ?
Loch Exploration was an inactive stock on the OTC bulletin board at the time of its acquisition of Design Automation Systems.
The name of the acquiring company, an inactive stock on the OTC bulletin board, will be changed to Design Automation Systems, Inc.
Recently, Quality Mill Supply received a Trading Partner Connect-generated list of inactive stock items available at deep discounts from other distributors.
Something else contributing to a decrease in inactive stock is the ability to view inventory at any of the company's 108 branches.
The weighted price index and Kuwait-15 index rose two minutes before the closing session supported by some inactive stocks for the second day in a row.
Just back test the total collection of 14,022 active and inactive stocks in Research Wizard and see that these 14,022 stocks combined compounded 7436%/year with a maximum drawdown of -26% over the past 12 years.
These Stock Exchanges have the list of securities in which their members are expected to have a reasonable number of orders, so that to avoid wastage of time and energy to do business in inactive stocks.
KUWAIT, Aug 19 (KUNA) -- Kuwait Stock Exchange (KSE) dropped Wednesday for the fourth session in a row as speculations and selling pressure controlled the trading as well as traders focused on the inactive stocks.
On his part, the Arzaq Capital Company's Advisor Salah Al-Sultan said trading this week was concentrated on inactive stocks amid expectations of financial corporate disclosures for the third quarter.
But the move may put investors at risk if they buy into small or previously inactive stocks seeking to enter the medical marijuana business.

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