Open Market Transaction

Open market transaction can be defined as the order to selling securities and shares of a business entity in the open market. The order of selling the securities and share is given by the insider of the business entity and it may be the decision of a high level management personal or the CEO of the entity. The order of selling shares and securities is done after completing and managing the entire necessary file required for doing this action. Open market transaction involves the selling of the restricted securities in an open market.

Whenever open market transaction is triggered there is an order by the insider of the company to sell the restricted securities in the open market. However these securities must be sold via following all the required rules and regulations. While selling the securities the business entity must follow the rules set by SEC. There are a number of advantages of open market transaction and one of the major advantages is that with the help of open market transaction process an insider can buy or sell shares of the business entity voluntarily in the open market. Another advantage of this process is that the selling or purchasing price of the shares sold or purchase is equal to or nearly equal to the market price of the shares currently floating in the market.

Other Related Accounting Articles:

Recommended Books !


Download E accounting book in MS-word format for just 20 $ - Click here to Download

Leave a Reply

Your email address will not be published. Required fields are marked *