Active Market

Heavy volume of trading in a particular stock, bond, or commodity. The spread between bid and asked prices is usually narrower in an active market than when trading is quiet.

Also, a heavy volume of trading on the exchange as a whole. Institutional money managers prefer such a market because their trades of large blocks of stock tend to have less impact on the movement of prices when trading is generally active.

Heavy volume of trading in a particular market or stock, bond, or commodity. The spread between bid and asked prices is usually narrower in an active market than when trading is quiet.