Closed-Market Transaction

DEFINITION of 'Closed-Market Transaction'

An order placed by a company's insider to buy or sell restricted securities from within the company's own treasury. Appropriate documentation must be filed before the order can be placed.

BREAKING DOWN 'Closed-Market Transaction'

A closed-market transaction is simply an order placed by an insider according to the rules and regulations set out by the SEC. With a closed-market order, the insider is buying or selling shares at a price above or below the market and directly from and to the company rather than openly on the market. These types of inside trades are generally not considered significant as they do not reflect the insider's sentiment towards the company.  



Here's an example of a closed-market transaction: an insider is given the stock of a subsidiary company, and then he or she immediately sells the stock.

RELATED TERMS
  1. Treasury Stock (Treasury Shares)

    The portion of shares that a company keeps in their own treasury. ...
  2. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  3. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  4. Open-Market Transaction

    An order placed by an insider, after all appropriate documentation ...
  5. Insider Trading

    The buying or selling of a security by someone who has access ...
  6. Insider

    A director or senior officer of a company, as well as any person ...
Related Articles
  1. Markets

    What Investors Can Learn From Insider Trading

    Some insider trading is actually legal - and can be extremely telling for investors.
  2. Options & Futures

    When Insiders Buy, Should Investors Join Them?

    Insider tracking can inform your investment strategy, but it requires research and a level head. Find out what to look for.
  3. Options & Futures

    Can Insiders Help You Make Better Trades?

    Find out why the trading activity of owners and executives can be a valuable trade-confirmation tool.
  4. Budgeting

    Low-Income Households to Get Broadband Subsidy

    The FCC's recently approved broadband subsidy for low-income households should help many people get online. Not that everyone's in favor of it.
  5. Retirement

    Laws That Help Low Income Retirement

    If you're retired – or about to be – and money is tight, look to these programs and other benefits for help should you need it.
  6. Savings

    Check for Lost Property Now – Before a State Grabs It

    You may be richer than you think. There are billions in unclaimed funds in the U.S. Here's how to determine whether some of that money is yours.
  7. Taxes

    Owe Taxes? You Could Lose Your Passport

    A rule slipped into a transportation bill allows the U.S. government to revoke your passport if your tax debt exceeds $50k. Here’s what it all means.
  8. Taxes

    All You Need to Know About Tax Havens

    These tax-free zones might sound appealing, but the consequences often aren't.
  9. Stock Analysis

    How Youku Tudou Replaced Pirating in China (YOKU)

    Learn how Youku Tudou helped gradually stamp down video piracy in China, using methods such as lawsuits and the utilization of technology.
  10. Credit & Loans

    5 Things Debt Collectors Can't Do to You

    You may owe money, but you still have rights. There's a long list of things debt collectors are banned from doing to you. Know what's illegal.
RELATED FAQS
  1. How does a stop-loss order work, and what price is used to trigger the order?

    A stop-loss order, or stop order, is a type of advanced trade order that can be placed with most brokerage houses. The order ... Read Answer >>
  2. What exactly is insider trading?

    An "insider" is any person who possesses at least one of the following: 1) access to valuable non-public information about ... Read Answer >>
  3. What's the difference between a stop and a limit order?

    Different types of orders allow you to be more specific about how you'd like your broker to fulfill your trades. When you ... Read Answer >>
  4. What is the Writ of Mandamus?

    Learn how the powerful, but rarely used, court-ordered writs of mandamus can end an injustice and force someone, or a public ... Read Answer >>
  5. Are UTMA accounts escheatable?

    Find out whether your UTMA account can be escheated, the basics of escheatment and who is responsible for maintaining account ... Read Answer >>
  6. Can the IRS audit you after a refund?

    Learn how the U.S. Internal Revenue Service (IRS) can conduct a tax audit even after a taxpayer was issued a tax refund in ... Read Answer >>
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
  3. Generally Accepted Accounting Principles - GAAP

    The common set of accounting principles, standards and procedures that companies use to compile their financial statements. ...
  4. DuPont Analysis

    A method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Economies Of Scale

    Economies of scale is the cost advantage that arises with increased output of a product. Economies of scale arise because ...
Trading Center