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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
At the end of June, the end of IntegraFin's third quarter, funds under direction of Transact were GBP36.35 billion, which is 9.8% higher than nine months before and 5.7% higher than three months prior.
'Third parties who may be authorized to transact with the bureau on behalf of another person or entity in compliance with the CMTA [Customs Modernization and Tariff Act] shall be treated equally as legitimate importers or consignees,' the BOC added.
"Our 2019 TransAct Middle East report reveals a varied landscape across markets and sectors, with several prominent themes emerging despite macro-economic challenges and a slowdown in the 2018 deal market.
"Mogean is proud to have our LifeID fraud prevention product recognized as market leading and look forward to sharing more about it at TRANSACT," said Matt Reilly, CEO at Mogean.
'The secretary of Finance, in his capacity as treasurer of the PRRD campaign, assures (sic) that he did not pay anything to Cambridge Analytica nor did he transact with them,' the presidential spokesman said in a statement.
TELECOMWORLDWIRE-October 31, 2016-InMobi, Moat to allow brands to transact on Viewability
The money from two of them (I was left with one in Prudential) was reinvested in a company called Transact. At the same time I took 25 per cent of the total of both funds he transferred as a tax-free lump sum.
This programme offers customers who transact with Joyalukkas Exchange to 'Scratch & Win' exciting gifts on every transaction.
Speaking about how it will benefit their customers, Paytm CEO, Harinder Takhar said, "There are many mobile phones in this country, but not as many credit cards to easily transact with on mobile.
The combined company also will have a technology platform that offers real-time ability to transact insurance business 24 hours a day, with core insurance carriers and an insurance training institute.
President UNISAME Zulfikar Thaver said SME exporters feel uncomfortable in exporting goods to unknown buyers and to secure themselves they are advised to transact business through ESCROW whereby as per arrangement money is delivered to a third party (ESCROW agent) to be held in trust pending the fulfilment of condition in a contract whereupon the ESCROW agent will deliver the payment to the seller.