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Simple English definitions for legal terms
negotiated market
Read a random definition: Roth v. United States (1957)
A quick definition of negotiated market:
A negotiated market is a place where people buy and sell things by talking to each other and agreeing on a price. It's different from an auction market, where people bid against each other to buy things. In a negotiated market, buyers and sellers find each other and make a deal. It can be for anything, like stocks, cars, or even toys. It's like when you trade your sandwich for your friend's cookies at lunchtime. You negotiate and agree on a fair trade.A more thorough explanation:
Definition: A market where buyers and sellers negotiate prices directly with each other, rather than through a centralized exchange or auction.
Examples: Over-the-counter (OTC) markets for stocks, bonds, and other securities are examples of negotiated markets. In these markets, buyers and sellers work with brokers to find counterparties and negotiate prices. Another example is the market for real estate, where buyers and sellers negotiate the price of a property directly with each other.
Explanation: In a negotiated market, there is no central authority setting prices or matching buyers and sellers. Instead, buyers and sellers work together to find a mutually agreeable price. This can lead to more flexibility and customization in transactions, but also requires more effort and time to find a counterparty and negotiate a price. The examples illustrate how buyers and sellers in these markets work together to find a price that works for both parties.