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 ...
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  3. Insider Information

    A non-public fact regarding the plans or condition of a publicly ...
  4. Insider Trading

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    The idea that insiders have information not available to the ...
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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. 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 >>
  4. What's the difference between a market order and a limit order?

    Buy and sell trades with market orders at the present stock price and execute limit orders if the stock price falls within ... Read Answer >>
  5. How do I place a limit order online?

    Learn how a limit order is placed, the types of stocks it is most useful for and the specifications placed with it to suit ... Read Answer >>
  6. What are the regulations surrounding limit order protection?

    Learn about the order protection rule enacted by the Securities and Exchange Commission (SEC) to ensure investors receive ... Read Answer >>
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