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open-market transaction

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Financial Dictionary

Open-Market Transaction

An order placed by an insider, after all appropriate documentation has been filed, to buy or sell restricted securities openly on an exchange.

Investopedia Commentary

This is simply an order placed by an insider to buy or sell shares according to the rules and regulations set out by the SEC. The importance of an open market order is that the insider is voluntarily buying or selling shares at or close to the market price.

Related Links

Can Insiders Help You Make Better Trades?

See also: Closed-Market Transaction, Exchange, Insider, Insider Trading, SEC

Also spelled: Open Market Transaction

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