cabinet crowd

Cabinet crowd

NYSE members who trade bonds with a low daily traded volume. See: Automated Bond System.

Inactive Bond Crowd

Traders on the New York Stock Exchange who deal with infrequently traded bonds. Because they deal in inactive bonds, the inactive bond crowd is responsible for only a small portion of the bond trading volume. Prices are usually lower than actively traded bonds because inactive bonds have a wider bid-ask spread. The inactive bond crowed is commonly called the cabinet crowd because they normally issue limit orders that are kept on steel racks called cabinets until the orders are needed. See also: Active Bond Crowd.

cabinet crowd

New York Stock Exchange members who trade inactive bonds. Also called inactive bond crowd. Compare active bond crowd.

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.