Open market


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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 ?
Presently, the allocatees of coal mines for specified end use or own consumption are not permitted to sell coal in the open market. (ANI)
10th in US Announced Legal Adviser Ranking - Based on Value - Undisclosed Values and Values Up to and Including $500M - Excluding Equity Carveouts, Withdrawn Deals, and Open Market Repurchases
The remaining open market units, which form the second phase, are expected to complete in 2019 and will be launched at a later stage from the Group's Sales and Marketing Suite in Stratford.
In the arsenal of central banks across the globe, open market operations - along with key interest rate and the cash reserve ratio - are crucial tools to add or remove funds from the financial system.
The Reuters news agency said most open market currency dealers stopped selling dollars Monday and removed signs posted in their windows advertising dollar sales rate.
Currently the commodity is available in the open market at Rs 2,475 per 100 kg bag which is Rs 75 less on each 100 kg of the wheat bag sold at official rates fixed by the Sindh Food Department.
China's central bank has said that it has drained CNY30bn (USD4.39bn) from the money market on Tuesday by selling bills in its regular open market operation.
On October 11, 2005, the Federal Reserve Board and the Federal Open Market Committee released the minutes of the Committee meeting held on September 20, 2005.
On her stall in the Open Market, she also sells crystals and tumblestones, silver jewellery including bangles and pendants, nose studs, large and small Tree Free cards, candles,books and CDs.
165(a) for a decline in the value of stock that was acquired on the open market for investment.
* the participating interests can be acquired and sold by members of the public in the open market or can be purchased from or sold to the NRE by a member of the public; (42A)
No one taught me more about financial markets." His most recent boss, Bill McDonough, who just stepped down as New York Fed President, adds, "If the Fed moves to a nontraditional policy, the open market desk couldn't be in better hands.