Orderly Market

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Equilibrium

    The state in which market supply and demand balance each other ...
  2. Price Discovery

    A method of determining the price for a specific commodity or ...
  3. Demand

    An economic principle that describes a consumer's desire and ...
  4. Write Out

    A dual trade transaction enacted by a specialist in an individual ...
  5. Supply

    A fundamental economic concept that describes the total amount ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value ...
Related Articles
  1. Economics

    Economics Basics

    Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!
  2. Investing Basics

    What Are A Stock's "Fundamentals"?

    The investing world loves to talk about fundamentals, but do you know what it means?
  3. Fundamental Analysis

    Institutional Investors And Fundamentals: What's The Link?

    Big-money sponsorship might make a company look good, but it's not always a reliable gauge of stock quality.
  4. Investing Basics

    7 Investing Mistakes And How To Avoid Them

    No investor is flawless. Here are some common investing fallacies and a step-by-step guide on how to avoid them.
  5. Investing

    Tips For Investors In Volatile Markets

    Find out what to look out for when trading during market instability.
  6. Active Trading

    Fundamental Analysis For Traders

    Find out how this method can be applied strategically to increase profit.
  7. Economics

    An Introduction to Government Loans

    Government loans further policymakers' efforts to create positive social outcomes by offering timely access to capital for qualified candidates.
  8. Markets

    Capital Markets

    Capital Markets are financial markets where organizations that need money for productive long-term purposes.
  9. Bonds & Fixed Income

    Spotting A Market Bottom

    Recognizing a market bottom can lead to huge opportunities for an investor. We go over how you can spot the bottom so that you can reap the rewards.
  10. Investing Basics

    What exactly is being done when shares are bought and sold?

    Most stocks are traded on physical or virtual exchanges. The New York Stock Exchange (NYSE), for example, is a physical exchange where some trades are placed manually on a trading floor (other ...

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center