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Away from the market |
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Away from the marketIn context of general equities, out of line with the inside market at this time, such as when a bid on a limit order is lower or the offer price is higher than the current market price for the security; held by the specialist for later execution unless FOK. Antithesis of in-line.Away from the market Similar MatchesLiquid marketLiquid marketA market allowing the buying or selling of large quantities of an asset at any time and at low transactions costs. Internally efficient marketInternally efficient marketSee: Operationally efficient market Seek a marketSeek a marketSearch for a securities buyer or seller. Fourth marketFourth marketThe market of securities trading without the participation of brokers, thus obviating commission costs. The market, which is computer based, mainly comprises large institutional investors such as mutual funds and insurance companies. Normal market sizeNormal market sizeWhen shares are traded on the London Stock Exchange, the market makers have to quote a bid price and and offer price at which they will deal. But the prices they quote, which are disseminated to brokers via the SEAQ system, only have to be honoured up to a certain size of order. The Normal Market Size defines what that figure is for each company and it is based on a percentage of the share's average daily turnover in the previous year.To understand the point of NMS, you have to remember that some listed companies have hundreds of millions of shares in issue, and some have low thousands. The effect on the share price of someone buying 5,000 shares will be much greater if the company is a small one than if it is a blue chip, and it would be unfair on a market maker if the offer price quoted had to apply to any buy order no matter how large.The general rule is that quotes on a n SEAQ screen are really only relevant if the size of an order being placed (whether a buy order or sell order) is within the NMS. If it is higher than the NMS, the market maker will not be obliged to deal at the quoted prices.The NMS system replaced the previous alpha, beta, gamma, delta shares system which was a reflection of the order of the most actively traded shares but had unintentionally become a measure of corporate strength, status and reliability. Further SuggestionsCapital market line (CML)Perfectly competitive financial markets Middle Market Manufacturing Exporter (MMME) Real market bull market Book to market unlisted securities market Complete capital market Market value Bear market Market clearing euromarkets Bond market association Nonintermediated debt market Open market operation Market Value Intermediated market Open market rates Efficient market Market price of risk Auction Market Preferred Stock (AMPS) Base market value Pricing to market Operationally efficient market Coherent Market Hypothesis |
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