Deep Market

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.

BREAKING DOWN '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.

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RELATED FAQS
  1. What does it mean when financial news reports say that more issues were sold than ...

    This simply means that in a market, more stocks (issues) traded down for the day compared to the number of companies that ... Read Answer >>
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    An auction market is one in which stock buyers enter competitive bids and stock sellers enter competitive offers at the same ... Read Answer >>
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    Stock volatility refers to a drastic decrease or increase in value experienced by a given stock within a given period. There ... Read Answer >>
  4. What does it mean when a stock symbol has a .PK after it?

    The .PK is an example of a suffix representing where the security is traded - an over-the-counter (OTC) network or an international ... Read Answer >>
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    Liquidity refers to how easy it is to buy and sell shares without seeing a change in price. If, for example, you bought stock ... Read Answer >>
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