Cabinet Security

AAA

DEFINITION of 'Cabinet Security'

A security that is listed under a major financial exchange, such as the NYSE, but is not actively traded. A cabinet security is traded by an inactive investment crowd, and is more likely to be a bond than a stock.

INVESTOPEDIA EXPLAINS 'Cabinet Security'

The "cabinet" in cabinet security refers to the physical place where bond orders were stored off of the trading floor. The cabinets would typically hold limit orders, and the orders were kept on hand until they expired or were executed.

RELATED TERMS
  1. Limit Order

    An order placed with a brokerage to buy or sell a set number ...
  2. Inactive Bond Crowd

    A group of exchange members who buys and sells bonds, that are ...
  3. Exchange Control

    Types of controls that governments put in place to ban or restrict ...
  4. Cabinet Crowd

    Members of the NYSE who typically trade in inactive bonds. The ...
  5. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  6. Volume

    The number of shares or contracts traded in a security or an ...
Related Articles
  1. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  2. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  3. Dual And Multiple Exchange Rates 101
    Forex Education

    Dual And Multiple Exchange Rates 101

  4. An Introduction To The International ...
    Fundamental Analysis

    An Introduction To The International ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center