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TeachMeFinance.com Active Market -- Market where there is a very large amount of transactions in goods, bonds and stocks . Typically there is less divergence between bid and asked prices in an active market than in a subdued or quiet market.
An active market also holds when there is generally heavy trading on the exchange. Such a market allows for trading in big volumes of shares without influence on the direction of prices. Hence institutions managing the portfolios of clients favor an active market.
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