informationless trade


Security trade aimed at achieving an investment objective that is not motivated by the security's expected price movement. Such trades include liquidations of holdings (for personal cash needs, for example) and new cash investments (by fresh entrants into the securities market, for example). These trades should not affect the security's price because they do not contain any pertinent information not already reflected in that price.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
informationally efficient market information-motivated trades