Closed-Market Transaction

外汇网2021-06-19 14:06:12 160

An order placed by a company'sinsider to buy or sell restricted securities from within the company's own treasury.Appropriate documentationmust befiled before the order can be placed.

Taobiz explains Closed-Market Transaction

A closed-market transactionis simply an order placed by an insider according to the rules and regulations set outby the SEC. With a closed-market order, the insider is buying or selling shares at a price above or below the market and directly from and to the company rather than openly on the market. These types of inside trades are generally not considered significant as they do not reflect the insider's sentiment towards the company.

Here's an example of aclosed-market transaction: aninsider is given the stock of a subsidiary company, and then he or she immediately sells the stock.

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