Slow Market

A A A

DEFINITION

1. A market that currently exhibits low trading volumes and/or low volatility levels. The term slow market can be used to describe a market with few issues coming up for sale to investors through initial public offerings and secondary offerings in the equity markets, or through new issuance in the corporate bond market.

2. A market in which trades are not executed at the fastest possible speed. Generally, a delay of more than a few seconds during the execution of a trade is considered slow, especially on the electronic trading exchanges.


INVESTOPEDIA EXPLAINS

1. Virtually any market will experience periods of low activity, ranging from a single day to months or longer. A slow market does not imply a rising or falling market, but it may imply a stationary or "hovering" market.

2. Regulation NMS was implemented to speed up situations in which slow markets exist by routing eligible orders to different exchanges for their immediate execution.


RELATED TERMS
  1. Graveyard Market

    A prolonged bear market where existing investors want to get out and new investors ...
  2. Liquid Market

    A market with many bid and ask offers, low spreads and low volatility. In a ...
  3. National Association Of Securities ...

    The NASD was a self-regulatory organization of the securities industry responsible ...
  4. Thin Market

    A market with a low number of buyers and sellers. Since few transactions take ...
  5. Price Continuity

    A characteristic of a liquid market where the price movements between transactions ...
  6. Statement Shock

    The shock associated with opening an investment statement and seeing that the ...
  7. Float Shrink

    A reduction in the number of a publicly traded company’s shares available for ...
  8. Capital Strike

    A refusal of businesses to invest in a particular sector of the economy or in ...
  9. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly ...
  10. Gray Market

    An unofficial market where securities are traded. Gray (or “grey”) market trading ...
Related Articles
  1. Where's The Market Headed Now?
    Fundamental Analysis

    Where's The Market Headed Now?

  2. Using Volume Rate Of Change To Confirm ...
    Active Trading Fundamentals

    Using Volume Rate Of Change To Confirm ...

  3. 10 Tips For Choosing An Online Broker
    Options & Futures

    10 Tips For Choosing An Online Broker

  4. Market Breadth: A Directory Of Internal ...
    Active Trading Fundamentals

    Market Breadth: A Directory Of Internal ...

  5. Understanding Leveraged Buyouts
    Fundamental Analysis

    Understanding Leveraged Buyouts

  6. How The Sarbanes-Oxley Era Affected ...
    Fundamental Analysis

    How The Sarbanes-Oxley Era Affected ...

  7. 3 Key Signs Of A Market Top
    Trading Strategies

    3 Key Signs Of A Market Top

  8. 5 Things To Know About The Alibaba IPO
    Investing

    5 Things To Know About The Alibaba IPO

  9. Why The Winklevoss Twins' New Bitcoin ...
    Investing

    Why The Winklevoss Twins' New Bitcoin ...

  10. The Biggest IPO Flops
    Investing

    The Biggest IPO Flops

comments powered by Disqus
Hot Definitions
  1. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  2. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  3. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  4. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  5. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
  6. Negative Carry

    A situation in which the cost of holding a security exceeds the yield earned. A negative carry situation is typically undesirable because it means the investor is losing money. An investor might, however, achieve a positive after-tax yield on a negative carry trade if the investment comes with tax advantages, as might be the case with a bond whose interest payments were nontaxable.
Trading Center