Business and Personal Finance Dictionary

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• THINLY TRADED
  
  A particular stock, sector, or market is said to be thinly traded if it is traded only infrequently, and there are a limited number of interested buyers and sellers. Prices of thinly traded securities tend to be more volatile than those traded more actively because just a few trades can affect the market price substantially. It can also be difficult to sell shares of thinly traded securities, especially in a downturn, if there is no ready buyer. Shares of small- and micro-cap companies are most likely to be thinly traded.
  
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