active market investment & finance definition
Heavy
volume; can be used for an exchange or a specific security. An active market is
more liquid and has a smaller bid/ask
spread, which is the difference between the sell and purchase prices.
See active market in Wall Street Words
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.
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