Simple English definitions for legal terms
Read a random definition: verbal-act doctrine
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.