active market

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Active Market

A market for a security with a high trading volume. Many investors look to active markets because they can be traded, even in rather large quantities, without affecting the price. Securities with active markets usually have low bid-ask spreads.

active market

A securities market or the market for a particular security in which trading is relatively heavy. An active market not only results in more profits for brokers but also helps institutional investors wishing to acquire or dispose of large positions without affecting price.
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In a big town and an active market we should have brought a good price; but this place was utterly stagnant and so we sold at a figure which makes me ashamed, every time I think of it.
In a first for the real estate industry, national residential real estate brokerage ZipRealty (NASDAQ:ZIPR), will enable home buyers and sellers to weigh in with their own reviews and ratings on most of the 900,000 homes listed on the Multiple Listing Service in ZipRealty's 19 active markets, including San Francisco, Los Angeles, Washington, D.
San Diego, Orange and Los Angeles counties were the most active markets for new homes, DataQuick said.
These estimates are not based on quoted prices in active markets for either identical or similar assets or liabilities, but rather on mark-to-model estimates.
When active markets do not exist, developing discounted cash flow estimates that reflect marketbased discount rates commensurate with the risk of the cash flows projected.