Thinly traded

Thinly traded

Infrequently traded.

Thinly Traded Security

An inactive or infrequently traded bond or stock. Thinly traded securities are usually traded in small batches, approximately five shares at a time. Thinly traded 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. Thinly traded 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.

Thinly traded.

A particular stock, sector, or market is said to be thinly traded if transactions occur only infrequently, and there are a limited number of interested buyers and sellers.

Prices of thinly traded securities tend to be more volatile than those traded more actively because just a few trades can affect the market price substantially.

It can also be difficult to sell shares of thinly traded securities, especially in a downturn, if there is no ready buyer. Shares of small- and micro-cap companies are more likely to be thinly traded than those of mid- or large-cap stocks.

References in periodicals archive ?
TLIF is a very thinly traded stock with most of this year's trading activity taking place in the past few days.
The con artists behind marijuana stock scams may try to entice investors with optimistic and potentially false and misleading information that in turn creates unwarranted demand for shares of small, thinly traded companies that often have little or no history of financial success.
50, having ended a thinly traded half-day session on Monday, New Year's Eve down 0.
They also emphasized the value of open trade in ensuring food security by allowing food supply to meet demand across the world, and stressed the need for deeper agricultural markets with thinly traded commodities being amongst the most volatile.
The portfolio included layers of instruments used in hedging that became too complicated to work and too big to unwind quickly in the esoteric, thinly traded market.
In the Tokyo market's most thinly traded day in almost five months, the 225-issue Nikkei Stock Average lost 135.
In a complaint filed January 10, the Securities and Exchange Commission accused Calandra of using his newsletter to promote, in the words of The New York Times, "the thinly traded stocks of 23 companies, without disclosing that he owned them, and then went on to sell them for a gain of more than $405,000.
Rexhall's common stock recently dropped below the minimum $1 per share bid price required by Nasdaq to maintain a listing and is very thinly traded, the company said.
The thinly traded, over-the-counter stock last traded on March 6, closing up 5 cents at $8.
Al Goodman, a trader with ELG Metals, Chicago, says that nickel is a thinly traded commodity, making it more volatile.
The company's ordinarily thinly traded shares have declined 43% in the past year, the news service reported.
It hasn't done much for the company's thinly traded stock, but DAC Technologies Group International, the Little Rock designer and importer of gunlocks and other security products, recently announced that Wal-Mart Stores Inc.