Tight market

Definition:

A market in which volume is high, trading is active and highly competitive, and consequently spreads between bid and ask prices are narrow.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Measurement error

Errors in measuring an explanatory variable in a regression, which leads to biases in estimated parameters.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio