Negotiated markets

Negotiated markets

Markets in which each transaction is separately negotiated between buyer and seller (i.e., an investor and a dealer).

Negotiated Market

A secondary market in which potential buyers and sellers negotiate the price of each transaction. Most stock exchanges are negotiated markets: buyers express interest by posting bid prices and sellers do the same with ask prices. A negotiated market operates according to the law of supply and demand. See also: Market price, Fair market value.