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.

  1. Treasury Stock (Treasury Shares)

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

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

    An order placed by an insider, after all appropriate documentation ...
  4. Exchange

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

    A director or senior officer of a company, as well as any person ...
  6. Insider Trading

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