Thin
Thin is a financial term used to describe a market or security that has low trading volume or liquidity. It is often used to describe a market or security that is not actively traded, or one that has a low number of shares available for trading. Thin markets are often characterized by wide bid-ask spreads, meaning that the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept is greater than in more liquid markets.
History of the Term
The term “thin” has been used in the financial markets since the early 1900s. It was first used to describe a market or security that had low trading volume or liquidity. The term was used to describe markets or securities that were not actively traded, or ones that had a low number of shares available for trading.
Comparisons
| Market/Security | Liquidity | Bid-Ask Spread |
|---|---|---|
| Thin | Low | Wide |
| Liquid | High | Narrow |
Summary
In summary, thin is a financial term used to describe a market or security that has low trading volume or liquidity. It is often used to describe a market or security that is not actively traded, or one that has a low number of shares available for trading. Thin markets are often characterized by wide bid-ask spreads, meaning that the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept is greater than in more liquid markets. For more information about this term, you can visit websites such as Investopedia, The Balance, and Investing.com.
See Also
- Liquidity
- Bid-Ask Spread
- Market Maker
- Volume
- Price Discovery
- Market Efficiency
- Market Capitalization
- Price Volatility
- Market Depth
- Market Risk
