THIN MARKET Definition

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THIN MARKET is a market in which there is not an abun­dance of securities available, where any activity, either a purchase or sale, may have a substantial effect on market prices. See TIGHT MARKET.

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IN-THE-MONEY OPTION is an expression used for any option series with intrinsic value, i.e., the options strike (exercise) price and market price of the underlying security are such that the holder can exercise the option at a profit. For example, if a call option with a strike price of 30 and the underlying stocks market price is currently 33, the call is in the money. A put option is considered in the money when the underlying stock is selling below the strike price. Premiums and other transaction costs are not considered in determining whether the option is in the money or out of the money. See OUT-OF-THE-MONEY OPTION.

SALES ALLOWANCE is an offer of a lower price as an inducement to the buyer to accept delivery under special circumstances, e.g. when the merchandise delivered is not exactly what was ordered.

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