Thinly traded

Thinly traded

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

Thinly Traded Security

An inactive or infrequently traded bond or stock. Thinly traded securities are usually traded in small batches, approximately five shares at a time. Thinly traded 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. Thinly traded 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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Thinly traded.

A particular stock, sector, or market is said to be thinly traded if transactions occur only infrequently, and there are a limited number of interested buyers and sellers.

Prices of thinly traded securities tend to be more volatile than those traded more actively because just a few trades can affect the market price substantially.

It can also be difficult to sell shares of thinly traded securities, especially in a downturn, if there is no ready buyer. Shares of small- and micro-cap companies are more likely to be thinly traded than those of mid- or large-cap stocks.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Shares of the thinly traded, micro-cap biotech Ardelyx Inc (NASDAQ: ARDX) have risen over 200% year-to-date.
10K contracts is 80x the typical put volume for the thinly traded ETF that holds a number of REITS including AMT and CCI, with two blocks on the PHLX early in the day as XLRE traded $39.14.
Making the case for an inversion being positive for domestic equities, we highlight major characteristics of Pakistan's financial markets (thinly traded debt market limits predictive power of yields) that negate many of the widely held international trends based on this phenomenon (harbinger of recession), while flagging inflation reads for the months of 3QCY19 (and any additional revenue measures adopted along the way) to crystalize our rate cut forecast.
Since the announcement by AAM of shareholder approval for the issue of 63,102,080 new shares, AAM shares, although thinly traded on the Frankfurt stock exchange, have risen in price from EUR1.30 per share (mid-June 2019) to a high of EUR4.50 per share on 29 July 2019.
Cumulus, however, is a thinly traded issue, with just 7,188 shares trading on Friday.
The central bank is the biggest player in the thinly traded local foreign exchange market and controls what is widely considered a managed float system.
Pakistan's foreign exchange market is thinly traded with $ 200 to $ 300 business and cannot be left the market forces which are prone to speculative activities which push the rate of exchange between rupee and the US dollar impacting the parity of local currency with other major foreign currencies as well.
In the case of rice, the goal of self-sufficiency remains an important one because rice is one of the thinly traded commodities in the world market.
While there are a few exchange-traded funds backed by rhodium, they are small and thinly traded. That leaves retail investors with a limited choice of bars or coins from a handful of dealers, or getting minor exposure to the metal through the shares of South Africa's platinum miners.
"The markets are so thinly traded, primarily by retail accounts, that these guys can get really scared out of positions," he said.
There are the "pump-and-dump" chat-rooms where traders take advantage of thinly traded digital currencies.
At 9.37am, PPB Group was thinly traded with 300 shares changing hands at RM19.20.