Inactive Bond Crowd

DEFINITION of 'Inactive Bond Crowd'

A group of exchange members who buys and sells bonds, that are infrequently traded. Limit orders placed by the inactive bond crowd, may take a longer period of time to fill, due to the absence of frequent trading.


The opposite of inactive bond crowd is the active bond crowd.

BREAKING DOWN 'Inactive Bond Crowd'

Before electronic trading, orders placed by those in the inactive bond crowd were stored in cabinets off to the side of the general trading floor. This gave rise to the nickname "cabinet crowd."

RELATED TERMS
  1. Bond Crowd

    A slang term used to describe members of the stock exchange that ...
  2. Active Bond

    A bond or other fixed-income security that is frequently traded ...
  3. Automated Bond System - ABS

    The electronic system on the NYSE that records bids and offers ...
  4. Cabinet Security

    A security that is listed under a major financial exchange, such ...
  5. Extendable Bond

    A long-term debt security that includes an option to lengthen ...
  6. Discount Bond

    A bond that is issued for less than its par (or face) value, ...
Related Articles
  1. Active Trading Fundamentals

    How The Power Of The Masses Drives The Market

    Market psychology is an undeniably powerful force. Find out what you can do about it.
  2. Bonds & Fixed Income

    How To Invest In Corporate Bonds

    Understand the basics of corporate bonds to increase your chances of positive returns.
  3. Home & Auto

    How To Choose The Right Bond For You

    Bond investing is a stable and low-risk way to diversify a portfolio. However, knowing which types of bonds are right for you is not always easy.
  4. Bonds & Fixed Income

    5 Fixed Income Plays After the Fed Rate Increase

    Learn about various ways that you can adjust a fixed income investment portfolio to mitigate the potential negative effect of rising interest rates.
  5. Options & Futures

    Top 6 Uses For Bonds

    We break down the stodgy stereotype to see what these investments can do for you.
  6. Bonds & Fixed Income

    Find The Right Bond At The Right Time

    Find out which bonds you should be investing in and when you should be buying them.
  7. Mutual Funds & ETFs

    Key Strategies To Avoid Negative Bond Returns

    It is difficult to make money in bonds in a rising rate environment, but there are ways to avoid losses.
  8. Mutual Funds & ETFs

    Why Muni Bonds and Bond Funds are Perfect Together

    Municipal bonds and bond funds differ in several ways, which is partly why they complement each other well.
  9. Mutual Funds & ETFs

    Bond Funds Boost Income, Reduce Risk

    These funds can provide stable returns for those who depend on their investment income.
  10. Stock Analysis

    A Simple Guide to Bond ETFs

    These alternatives to individual bonds or bond mutual funds offer several advantages, writes Rob Carrick, reporter and columnist for The Globe and Mail. The seemingly simple bond ETF could be ...
RELATED FAQS
  1. What determines the price of a bond in the open market?

    Learn more about some of the factors that influence the valuation of bonds on the open market, and why bond prices and yields ... Read Answer >>
  2. Do long-term bonds have a greater interest rate risk than short-term bonds?

    The answer to this question lies in the fixed income nature of bonds and debentures, often referred to together simply as ... Read Answer >>
  3. Do budget deficits "crowd out" the market?

    Find out how governments can crowd out private investment and other borrowers in the market for loanable funds whenever they ... Read Answer >>
  4. Why is the crowding out effect less likely to occur during a deep recession?

    Learn more about the crowding-out effect of government fiscal policy on private investment markets and whether it changes ... Read Answer >>
  5. How does crowding out affect supply and demand in the private-sector?

    Understand how crowding out affects supply and demand in the private sector. Learn why government borrowing can be a negative. Read Answer >>
  6. How does face value differ from the price of a bond?

    Discover how bonds are traded as investment securities and understand the various terms used in bond trading, including par ... Read Answer >>
Hot Definitions
  1. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  3. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
  4. Basis Point (BPS)

    A unit that is equal to 1/100th of 1%, and is used to denote the change in a financial instrument. The basis point is commonly ...
  5. Sharing Economy

    An economic model in which individuals are able to borrow or rent assets owned by someone else.
  6. Unlevered Beta

    A type of metric that compares the risk of an unlevered company to the risk of the market. The unlevered beta is the beta ...
Trading Center