Thinly Traded

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Dictionary Says

Definition of 'Thinly Traded'

An asset that cannot easily be sold or exchanged for cash without a substantial change in price. Thinly-traded securities in the financial markets are exchanged in low volumes and often have a limited number of interested buyers and sellers, which can often lead to volatile changes in price when a transaction does occur.

Also known as illiquid.
Investopedia Says

Investopedia explains 'Thinly Traded'

The stock prices of small unknown publically traded companies are deemed to be thinly traded. The lack of ready buyers and sellers generally leads to large discrepancies between the asking price and the bidding price. Thinly-traded securities are usually more risky than liquid assets because a small number of market participants can have such a large impact on the price.

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'Thinly Traded'

  • Mutual Fund Or ETF: Which Is Right For You?

    http://www.investopedia.com/articles/exchangetradedfunds/08/etf-mutual-fund-difference.asp
    ... of shares traded per day. Thinly traded securities are illiquid and have
    higher spreads and volatility. When there is little interest ...

  • ETF Tracking Errors: Is Your Fund Falling Short?

    http://www.investopedia.com/articles/exchangetradedfunds/09/etf-tracking-errors.asp
    ... Premiums and discounts as high as 5% have been known to occur, particularly
    for thinly-traded ETFs. Optimization When there are ...

  • The Over-The-Counter Market: An Introduction To Pink Sheets

    http://www.investopedia.com/articles/fundamental-analysis/08/pink-sheets-ottcb.asp
    ... Pink sheets-listed companies are usually very small, tightly held and may also be
    thinly traded. ... Thinly traded companies are another disadvantage. ...

  • Can investors short sell pink sheet or over-the-counter stocks?

    http://www.investopedia.com/ask/answers/06/otcpinksheetshortselling.asp
    ... problems. Short selling on OTC is extremely risky because these securities
    are often very thinly traded, which makes them very illiquid. ...

  • 4 Stocks With Low Volume And High Returns

    http://stocks.investopedia.com/stock-analysis/2010/4-Stocks-With-Low-Volume-And-High-Returns-LCNB-GEF.B-HUB.A-NTIOF1116.aspx
    ... Yale finance professor Roger Ibbotson believes thinly traded stocks outperform those
    with greater liquidity and he's got the research to prove it. ...

  • Small Caps Boast Big Advantages

    http://www.investopedia.com/articles/stocks/08/small-cap.asp
    ... Thin Market Small caps tend to be thinly traded and, while this is a characteristic
    that can slice both ways, it often presents a huge opportunity for shrewd ...

  • Profit From Market Misunderstandings

    http://www.investopedia.com/articles/stocks/11/benefit-from-market-misunderstandings.asp
    ... Watch the Major Holders Hedge funds and other large shareholders can have a major
    impact on stocks – especially those that are thinly traded. ...

  • What's Happening To The Best Trades Of Our Lives?

    http://stocks.investopedia.com/stock-analysis/2011/Whats-Happening-To-The-Best-Trades-Of-Our-Lives-BRF-EWZ-FXI-EPI-IDX-TUR-VNM0304.aspx
    ... The Market Vectors Brazil Small-Cap ETF (NYSE:BRF) has dropped 8.6%, while the
    thinly-traded Global X Brazil Consumer (Nasdaq:BRAQ) and Global X Brazil ...

  • Mutual Funds: Does Size Really Matter?

    http://www.investopedia.com/articles/mutualfund/03/071603.asp
    ... Small cap funds usually have stock that is thinly traded and tend to
    concentrate on a smaller number of stocks. If the small cap ...

  • Cheap Stocks Can Be Deceiving

    http://www.investopedia.com/articles/stocks/10/stocks-cheap-can-be-deceiving.asp
    ... Small investors can often buy these tiny (or thinly-traded) companies and then see
    institutional interest pick up as the companies grow and expand in volume ...

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