Orderly Market


DEFINITION of 'Orderly Market'

Any market in which the supply and demand are reasonably equal. The orderly market would thus be said to be in a state of equilibrium.

This can also refer to a site of exchange for goods, services or financial securities that is run in a fair, reliable, secure, accurate and efficient way. Orderly markets contribute to economic growth.

BREAKING DOWN 'Orderly Market'

Orderly markets usually have stable and competitive prices, reflecting the true value of the good or service. For securities markets, a stock exchange's market surveillance team is the entity in charge of ensuring an orderly market. In a disorderly market, there may be market manipulation, insider trading and other violations of regulations. If a market is disorderly, investors may lack the confidence to participate. The Federal Reserve also attempts to promote orderly market functioning by ensuring market liquidity.

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