Open-Market Transaction

DEFINITION of 'Open-Market Transaction'

An order placed by an insider, after all appropriate documentation has been filed, to buy or sell restricted securities openly on an exchange.

BREAKING DOWN 'Open-Market Transaction'

This is simply an order placed by an insider to buy or sell shares according to the rules and regulations set out by the SEC. The importance of an open market order is that the insider is voluntarily buying or selling shares at or close to the market price.

RELATED TERMS
  1. Closed-Market Transaction

    An order placed by a company'sĀ insider to buy or sell restricted ...
  2. Form 3

    A document that must be filed with the Securities and Exchange ...
  3. Insider Buying

    The purchase of shares of stock in a corporation by someone who ...
  4. Inside Quote

    The best bid and ask prices offered to buy and sell a security ...
  5. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
  6. Form 5

    A document that must be filed with the Securities and Exchange ...
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RELATED FAQS
  1. What is the difference between open-market and closed-market transactions?

    Insiders often are blessed with owning a significant portion of a company's shares. This shared ownership is often in the ... Read Answer >>
  2. What exactly is insider trading?

    An "insider" is any person who possesses at least one of the following: 1) access to valuable non-public information about ... Read Answer >>
  3. Can you accidentally engage in insider trading?

    Learn why it's possible to commit insider trading by accident, and why insider trading laws create logical inconsistencies ... Read Answer >>
  4. If I write a blog post about stocks I own, is that considered insider trading?

    Learn about whether writing a blog post about a stock you own is insider trading. Cracking down on inside trading is an important ... Read Answer >>
  5. How often should I measure my company's key performance metrics (KPIs)?

    Learn the definition of illegal insider trading while reviewing the people who can be involved and the regulations and consequences ... Read Answer >>
  6. What's the difference between insider trading and insider information?

    Learn about insider information and insider trading and the differences between the two; both involve nonpublic information ... Read Answer >>
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