Regulated Market

AAA

DEFINITION of 'Regulated Market'

A medium for the exchange of goods or services over which a government body exerts a level of control. This control may require market participants to comply with environmental standards, product-safety specifications, information disclosure requirements and so on.


The market for both prescription and over-the-counter drugs is an example of a regulated market. The Food and Drug Administration (FDA), a federal government body, tightly controls what drugs may be sold on the market, how they may be advertised, for what conditions they may be prescribed and more.

INVESTOPEDIA EXPLAINS 'Regulated Market'

Regulated markets provide obvious protection for consumers. However, some argue that the formal regulation of markets is unnecessary and imposes inefficiencies and unnecessary costs on markets and on taxpayers. These people argue that there are plenty of ways for markets to self-regulate.

RELATED TERMS
  1. Price Cap Regulation

    A form of economic regulation generally specific to the utility ...
  2. Regulation 9

    A regulation that permits national banks to open and operate ...
  3. Regulation AA

    A regulation designed to address practices by banks that are ...
  4. Regulation BB

    A regulation that requires banks to provide certain information ...
  5. Federal Reserve Regulations

    Rules put in place by the Federal Reserve Board to regulate the ...
  6. Functional Regulation

    A concept stating that a company with a specific business should ...
Related Articles
  1. Changes In Tax Legislation And Regulation
    Taxes

    Changes In Tax Legislation And Regulation

  2. Reg AC: What Does It Mean To Investors?
    Personal Finance

    Reg AC: What Does It Mean To Investors?

  3. The SEC: A Brief History Of Regulation
    Economics

    The SEC: A Brief History Of Regulation

  4. What Would Full Disclosure Mean For ...
    Active Trading

    What Would Full Disclosure Mean For ...

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center