active market

Active Market

A market for a security with a high trading volume. Many investors look to active markets because they can be traded, even in rather large quantities, without affecting the price. Securities with active markets usually have low bid-ask spreads.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

active market

A securities market or the market for a particular security in which trading is relatively heavy. An active market not only results in more profits for brokers but also helps institutional investors wishing to acquire or dispose of large positions without affecting price.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.