Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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