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Thinly traded

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Thinly traded
Infrequently traded.
Similar financial terms
Publicly traded assets
Assets that can be traded in a public market, such as the stock market.

 


Thinly traded
A particular stock, sector, or market is said to be thinly traded if transactions occur only infrequently, and there are a limited number of interested buyers and sellers.

Thinly traded
Infrequently traded.
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.

Thinly traded
Infrequently traded.
Third market
Exchange-listed securities trading in the OTC market.

Thinly traded stocks can have huge bid ask spreads. Often this is the case for penny stocks. It is not particularly unusual for a stock that last traded at 30 cents to have a bid of 25 cents and an ask of 35 cents.

In the context of investments, describes a thinly traded investment such as a stock or bond that is not easily converted into cash. Illiquid securities have high transactions costs. Often the bid-ask spread is very wide.

illiquid That which cannot quickly and easily be converted into cash, such as real estate, collectibles, and thinly traded securities. ILS The ISO currency code for the Israeli Shekel.

Although we do trade thinly traded options at times when we are very confident in the move we feel is coming, we normally like to trade options that have 500 or more open interests.

Banks and companies which are thinly traded.
How do pink sheets work?
If you are an investor who wants to trade on pink sheets, you must contact a brokerage firm to act as the agent between you and the market maker in pink sheets.

OTC Bulletin Board (OTCBB): Quotation system developed for penny stocks and other thinly traded securities.

Thinly traded stocks or securities that aren't listed on a major exchange are rarely a good idea for most investors.

In most cases, unlisted stocks are thinly traded because they do not get much attention from the media or financial analysts, and are judged to be too risky for many investors.
Unrealized gain ...

However, since GDRs are frequently offered by newer or less-known companies, the prices are often volatile and the stocks may be thinly traded. That makes buying GDRs riskier than buying domestic stocks.
Global fund ...

Examples of assets that tend to be liquid include foreign exchange, stocks traded on the New York Stock Exchange or on-the-run Treasury bonds. Assets that are often illiquid include limited partnerships, thinly traded bonds or real estate.

A market in which trading volume is low, and consequently bid and asked quotes are wide and the instrument traded is not very liquid. Very little stock to buy or sell. Illiquid.
Thinly traded
Infrequently traded.
Third market ...

is unchanged, useful information can be gleaned from changes in the SPREADS between yields on bonds of different maturities and on different sorts of bonds with the same maturity (such as government bonds versus corporate bonds, or thinly traded ...

Those who maintain short positions are responsible for dividends and face constant threats of a price rise; they face the risk that the security can no longer be borrowed, especially for thinly traded securities.

Volatility for blue chip stock is typically lower than that of lesser known, more thinly traded stocks. Blue chip stock is often popular in market downturns for their ability to pay dividends no matter what the economic climate.

See also: Treasury bonds, Expense, Trade Date, Interest rate swap, Trade acceptance

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