tight market

tight market definition - business

tight market

  1. A market in which the supply of a good or service is limited compared to demand. For example, a community in eastern Wyoming's coal country experiences a tight market in rental housing during the energy boom. Tight markets result in rising prices.
  2. A market for securities in which competition is intense and spreads are narrow. In a tight market, dealers must make up in volume what they lose on a narrowing of the spread. Compare deep market. See also thin market.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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