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tight market business definition
- 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.
- 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.
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