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Buying and selling securities.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.


The voluntary exchange of goods and/or services for money or an equivalent good or service. In ancient times and frequently even now, trade was conducted through the bartering of goods. In developed economies, trades are usually made with an intermediary, especially money or credit. Trade is regulated by laws of the particular jurisdiction in which a trade is made. Common restrictions include prohibitions on selling stolen property or non-existent goods. Most states, however, have much more complex regulations for trade, depending on the complexity of goods and services traded in their jurisdiction. States also regulate trade between parties in different jurisdictions. For example, two countries may encourage trade between each other, or, more famously, discourage trade through quotas and/or tariffs.

In modern finance, trade especially refers to trade on securities exchanges. For example, the sale of a stock from one investor to another is known as a trade. This type of trade is regulated by special agencies in the appropriate jurisdiction; trade in the United States is regulated by the SEC, among other organizations. See also: Countertrade, Free trade, Protectionism.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Hostile takeovers, ill-conceived mergers, and even the Crash of October are all side-effects of the trading habit--or at least Lowenstein makes a convincing case of it.
The United States is a member of two international organizations--the WTO and APEC--the Asian Pacific Economic Council--that could be used to build alternative trading arrangements that include both the United States and Taiwan.
* InnerWorkings, Inc.(NASDAQ: INWK) rose 4.9% to $4.72 in pre-market trading after climbing 58.45% on Friday.
The landscape of the trading system has changed immeasurably since the Tokyo Round of the late 1970s, much less the tariff reduction rounds during the first few years of the GATT.
The better atmosphere in political relations was soon reflected in the trade volume between the two countries, which reached $724.7 million in 2000, up from $539.2 million in 1999, making Turkey the fourth largest trading partner of Syria.
According to the financial press, many of the participants in the fund trading scandals were executives, portfolio managers and employees of the investment adviser who personally participated in the fund trading scandals and made illegal profits, or permitted favored shareholders to do so in return for lucrative business arrangements.
* Our trading relationship with Jordan has already borne considerable fruit; the U.S.-Jordan Free Trade Agreement has contributed to regulatory reforms, a dramatically improved investment climate, and increased investment in human capital.
NAFTA passed and Mexico went on to become one of this country's largest trading partners.
Twin Trading was set up by the Greater London Council (GLC) in 1985, in response to requests for help with trade and industry from developing countries.
Nissho Iwai is currently the sixth largest trading house in Japan, while Nichimen is the eighth largest in terms of sales.
The old cliche "If it sounds too good to be true, it is" has some application in the corporate trading area.