Open market


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Open market.

In an open market, any investor with the money to pay for securities is able to buy those securities.

US markets, for example, are open to all buyers. In contrast, a closed market may restrict investment to citizens of the country where the market is located.

Closed markets may also limit the sale of securities to overseas investors, or forbid the sale of securities in specific industries to those investors.

In some countries, for example, overseas investors may not own more than 49% of any company. In others, overseas investors may not invest in banks or other financial services companies.

The term open market is also used to describe an environment in which interest rates move up and down in response to supply and demand.

The Federal Reserve's Open Market Committee assesses the state of the US economy on a regular schedule. It then instructs the Federal Reserve Bank of New York to buy or sell Treasury securities on the open market to help control the money supply.

References in periodicals archive ?
And in a ``free and open market,'' no one gets the free health-care plan that the UFCW demands for its members.
Responding to New Jersey's announcement of an open market trading system for N[O.
The integrated solution is available today from both Open Market and iPlanet.
Unprecedented increase in prices of rice, meat and milk is also being witnessed in the open markets.
The Report of Examination of the System Open Market Account, conducted by the Board's Division of Reserve Bank Operations and Payment Systems as of the close of business on November 6, 1997, was accepted.
IDEA-STD-1010-A: Acceptability of Electronic Components Distributed in the Open Market will be available for purchase on October 2, 2006, for $300 per copy.
Open market operations were directed throughout the intermeeting period toward maintaining the existing degree of pressure on reserve positions, and the federal funds rate averaged just slightly above the Committee's intended level of 5 1/2 percent.
During 2005, a total of 79,312 shares were repurchased in open market transactions, which increased the number of shares repurchased in open market transactions to date to 95,486.
Open market operations were directed throughout the intermeeting period toward maintaining the existing degree of pressure on reserve positions, and the average federal funds rate for the period was at the Committee's intended level of 5 1/2 percent.
By unanimous vote, the Federal Open Market Committee approved the minutes of its meeting on March 25, 1997.
Real Time Insider also reported 2 open market buys from insiders at Puradyn Filter Technologies (AMEX: PFT).
The Committee members discussed certain changes in the procedures for conducting domestic open market operations that the Manager of the System Open Market Account had proposed for implementation at the beginning of 1997.