Open market

(redirected from Open-market)
Also found in: Dictionary, Encyclopedia.

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 ?
PBOC has injected a net CNY214bn into the money market last week through its open-market operations.
The central bank has added a net CNY55bn into the money market last week through its open-market operations, it added.
The central bank has injected a net CNY146bn into the money market last week through its open-market operations.
China's central bank has drained a net CNY133bn from the money market last week through its open-market operations.
China's central bank has drained net CNY52bn from the money market last week through its open-market operations.
China's central bank has drained a net CNY1bn from the money market last week through its open-market operations.
People's Bank of China (PBOC), which conducts regular open-market operations on Tuesdays and Thursdays, has sold CNY90bn worth of three-month bills last Thursday and CNY90 billion worth of repurchase agreements on Tuesday.
The central bank, which carries out regular open-market operations on Tuesdays and Thursdays, said that it sold CNY80bn worth of repos in Tuesday's operation.
China's central bank has injected a net CNY17bn (USD2.49bn) into the money market this week through its open-market operations.
China's central bank has announced its plans to sell up to CNY75bn (USD10.98bn) worth of three-month bills in its regular open-market operation on Thursday.
China's central bank has said that it sold CNY80bn (USD11.7bn) worth of repurchase agreements during its regular open-market operation on Tuesday.
China's central bank injected a net CNY38bn (USD5.56bn) into the money market this week through its open-market operations, as part of efforts to ensure liquidity in the banking system.