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.