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 ?
Although financial disclosures for the banking sector has begun, investment groups were absent in the week starting session yesterday, where the cheap and inactive stocks dominated the activity, amid hiking speculations targeting blue-chips, enlisted by the Kuwait-15 index.
But the move may put investors at risk if they buy into small or previously inactive stocks seeking to enter the medical marijuana business.
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.
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.
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.

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