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. Cabinet Crowd

    Members of the NYSE who typically trade in inactive bonds. The ...
  2. Bond Crowd

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

    A bond or other fixed-income security that is frequently traded ...
  4. Cabinet Security

    A security that is listed under a major financial exchange, such ...
  5. Automated Bond System - ABS

    The electronic system on the NYSE that records bids and offers ...
  6. Active Bond Crowd

    The name given to members of the NYSE and their specific bond ...
Related Articles
  1. Trading

    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. Personal Finance

    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.
  3. Trading

    When To Follow The Crowd And When To Lose It

    Our profits ultimately depend on the misfortune of other market players.
  4. Markets

    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. ETFs & Mutual Funds

    Bond ETFs: A Viable Alternative

    Discover the advantages of a security that tracks bond index funds, but trades like a stock.
  6. ETFs & Mutual Funds

    The 4 Biggest Bond Myths

    Bonds can be a great addition to a portfolio but be aware of these four myths.
  7. Trading

    Top 6 Uses For Bonds

    We break down the stodgy stereotype to see what these investments can do for you.
  8. Managing Wealth

    Find The Right Bond At The Right Time

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

    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.
  10. ETFs & Mutual Funds

    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.
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. What causes a bond's price to rise?

    Learn about factors that influence the price of a bond, such as interest rate changes, credit rating, yield and overall market ... 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. 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 >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center