Dictionary of Business Terms: active market
active market
heavy volume of trading in a particular market or stock, bond, or commodity. The spread between bid and asked prices is usually narrower in an active market than when trading is quiet.
Dictionary of Finance and Investment Terms: active market
active market
heavy volume of trading in a particular stock, bond, or commodity. The spread between bid and asked prices is usually narrower in an active market than when trading is quiet.
Also, a heavy volume of trading on the exchange as a whole. Institutional money managers prefer such a market because their trades of large blocks of stock tend to have less impact on the movement of prices when trading is generally active.
