Cabinet Security

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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. Cabinet Crowd

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

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

    The number of shares or contracts traded in a security or an ...
  6. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
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