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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Although these domestic and international objectives conflicted, they were not mutually exclusive: The Federal Reserve could have sterilized gold exports with open market purchases. In the fourth quarter of 1931, however, the Federal Reserve bought only $75 million in government securities, while gold exports, including gold earmarked for export, totaled $294 million.
Eternal Energy Corporation (OTC Bulletin Board: EERG), a US-based oil and gas company, has stopped open market purchases of its common stock.
Old Republic International Corporation (NYSE: ORI) said its Employees Savings & Stock Ownership Plan (ESSOP) plans to acquire up to 2,200,000 Old Republic common shares in open market purchases, as market conditions may warrant.
The share repurchase programme is intended to be implemented through purchases made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions or block trades, or by any combination of such methods, in accordance with applicable insider trading and other securities laws and regulations.
The airline intends to use cash on hand to finance the repurchase programme, which authorises the company to purchase common stock from time to time through open market purchases, negotiated transactions or other means in accordance with applicable security laws.
Under this new share repurchase programme announced today, shares may be repurchased from time to time through open market purchases or through negotiated transactions.
Repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable U.S.
American Hotel Income Properties REIT LP (AHIP) (TSX:HOT.UN) (TSX:HOT.U) (TSX:HOT.DB.U) reported on Friday that its chief executive officer (CEO) Rob O'Neill bought 12,000 additional units through open market purchases, during the past week.
The timing and exact amount of purchases of common equity by JPMorgan Chase under its equity repurchase program will depend on various factors, including market conditions, the Firm's capital position, internal capital generation, alternative investment opportunities, and legal and regulatory considerations; the Firm's repurchase program does not include specific price targets or timetables, and may be executed through open market purchases or privately negotiated transactions, including the use of Rule 10b5-1 programs, and may be suspended at any time.
Repurchases under such authorizations are subject to regulatory limitations and may occur from time to time in open market purchases, block transactions, accelerated share repurchase programs or similar facilities.