An open market purchase of us treasury bonds by the central bank will "ease" credit conditions for private firms.
What is open market transaction?
An open-market transaction is an order positioned by an insider to buy or sell restricted securities on an exchange after all necessary documentation has been filed with Securities and Exchange Commission (SEC).
Some key features regarding the open market transaction are-
- An open-market transaction allows a person with insider information about their corporation to trade securities legally without breaching insider trading laws.
- When open-market transactions take place, outdoors investors pay attention because the purchase as well as sale of securities by staffers can indicate the company's outlook.
- Insiders are more interested in buying shares than they are in selling shares.
- An open-market transaction is merely an initial order by an industry expert to buy or sell shares in accordance with the SEC's rules and regulations.
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