What is ‘inactive Bond crowd
Inactive bond crowd group of the new York stock exchange (NYSE) a person who buys and sells the inactive bonds, bonds that are rarely traded. Trade orders made by members of the inactive bond crowd, may take longer to fill than orders for active bonds placed in the active bond crowd due to low trading volume, although it largely disappeared after the Institute of electronic bond trading.
Inactive bond crowd is also called the crowd of office because of the trading orders for inactive bonds, which are stored in the wardrobe. The opposite of inactive bond crowd is an active crowd of the bonds.
Breaking the Inactive Bond crowd
Inactive bond crowd comprised of members of the new York stock exchange (NYSE), which trade in inactive bonds. Inactive bonds are bonds that are traded infrequently. Inactive bonds generally traded in smaller quantities than other bonds. Because bonds are traded infrequently and in small quantities, before electronic trading existed, these orders are used to trade on paper, and orders for inactive bonds were placed aside on a hanger in the closet to be sold when the time allotted. For this reason, the inactive bond crowd is also called the crowd of the Cabinet.
Inactive bonds are traded rarely, or traders or investors. The lack of activity makes them illiquid because they are difficult to buy or sell. This creates a vicious circle, which rarely trade makes investors wary of buying or selling they are just because they are not treated so often, and they fear that they will not be able to sell them, if they need.
The history of the crowd, Bond
The term crowd bonds with regard to bond traders became slang in the early 1900’s, when people referred to groups of brokers and dealers, who are all gathered on the bond register of the stock exchange for trading bonds. One dealer security Deposit or broker was to be called a man of bonds, and their group is called mob of the bonds. All inputs and outputs of the crowd bonds and bonds were stated in the book of 1922 exchange I. Edward Meeker. Before the stock market crash of 1929, trade was infrequent, so that all bonds considered inactive bonds. After crash and recovery, there was a large market with low risk investments, so the bonds took, and the crowd, bond became more and more men bond Exchange bonds. In the end, the bond market became large enough to separate brokers and dealers active in the crowd and inactive bond crowd bond.