Deep Market

AAA

DEFINITION of 'Deep Market'

A securities exchange, or place of commerce, where a large number of shares can be bought and sold without drastically affecting the price. A market might also refer to the buyers and sellers following a particular issue as well. For example, one could say that Microsoft has a deep market, whereas the typical bulletin board or pink sheets stock has a very thin market.

INVESTOPEDIA EXPLAINS 'Deep Market'

Generally speaking, deep market stocks show greater price stability and fewer wild volume swings, like many of the issues traded on larger exchanges like the Nasdaq or the New York Stock Exchange. Conversely, thin market stocks, like those traded over the counter, tend to be much more volatile in both price and volume.

RELATED TERMS
  1. Float

    Money in the banking system that is briefly counted twice due ...
  2. Outstanding Shares

    A company's stock currently held by all its shareholders, including ...
  3. Average Daily Float

    1. The dollar amount of checks or other negotiable instruments ...
  4. Thin Market

    A market with a low number of buyers and sellers. Since few transactions ...
  5. Market

    1. A medium that allows buyers and sellers of a specific good ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value ...
Related Articles
  1. Active Trading

    What Is Market Efficiency?

    The efficient market hypothesis (EMH) suggests that stock prices fully reflect all available information in the market. Is this possible?
  2. Investing Basics

    An Introduction To Stock Market Indexes

    Investopedia explains the five most talked about indexes and what makes them all different.
  3. Investing Basics

    A Look At Primary And Secondary Markets

    Knowing how the primary and secondary markets work is key to understanding how stocks trade.
  4. Bonds & Fixed Income

    How Now, Dow? What Moves The DJIA?

    Find out how this index tracks market movements and where it falls short.
  5. Markets

    Understanding Small- And Big-Cap Stocks

    If you don't realize how big small-cap stocks can be, you'll miss some good investment opportunities.
  6. Options & Futures

    Market Problems? Blame Investors

    Investors are only human, and their irrational behavior can often move the market.
  7. Investing Basics

    How do regulators ensure that markets are conducted at arm's length?

    Learn about arm's length transactions and how the Investment Advisers Act allows stockbrokers to sell securities based on suitability reviews.
  8. Investing Basics

    Are there any pure arm's-length markets?

    Learn about arm's length markets and transactions. Explore situations when different market participants may not be at arm's length.
  9. Investing Basics

    What are the most popular assets for investors?

    Learn about the most popular asset classes in the United States for different types of investors. Explore the risks and benefits associated with each.
  10. Economics

    Where do funds report their r-squared?

    Learn where to find R-squared calculations for mutual funds. Explore R-squared, Alpha and Beta and how these calculations measure securities' performance.

You May Also Like

Hot Definitions
  1. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  2. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  3. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  4. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  5. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  6. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
Trading Center