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Black market |
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Black marketAn illegal market, in which something is bought and sold outside of official government-sanctioned channels. Black markets tend to arise when a government tries to fix a price without itself providing all of the necessary supply or demand. Black markets in foreign exchange almost always exist when there are exchange controls.Black marketAn illegal market.Black market Similar MatchesMarket out clauseMarket out clauseA clause that may appear in an underwriting firm commitment that releases it from its purchase requirement if there are negative securities market developments. 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. Intermarket Trading System (ITS)Intermarket Trading System (ITS)Electronic communications network linking the trading floors of seven registered exchanges to permit trading among them in stocks listed on either the NYSE or AMEX and one or more regional exchanges. Through ITS, any broker or market maker on the floor of any participating exchange can reach other participants for an execution whenever the nationwide quote shows a better price available. A floor broker on the exchange can enter an ITS order to assure excecution of all of an offering or bid, instead of splitting it with competing brokers. Foreign exchange marketForeign exchange marketLargely banks that serve firms and consumers who may wish to buy or sell various currencies. AftermarketAftermarketSee: Secondary market. Further SuggestionsPerfectly competitive financial marketsIntermarket Trading System Marketing mix Market price London Bullion Market Stockholm Stock Market Security market plane Segmented Market Crossed market Free capital markets Auction markets Secondary mortgage market Open market purchase operation Bulldog market Open market rates Foreign market beta Market on Close (MOC) order Capital market efficiency Discounted in or by market Overlap the market heavy market Actual market Rigged market fair market value Two sided market |
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