What is a Choice Market?
A choice market is a stock market phenomenon that does not occur on a frequent basis. Essentially, a choice market is a short-lived condition in which there is no spread between the bid price and the ask price for a given investment. In other words, the security can be purchased or sold for the same price. There are a couple of factors that must be present in order for a choice market to appear. First, there must be an extremely high amount of liquidity occurring within the market at that time. When this high amount of securities are being dumped on the open market, it may depress demand and drive prices down on given securities. The end result is that while the stock or commodity may be purchased for a good price, the ability to resell the same commodity at a profit simply does not exist. A second factor that helps to create a choice market is a temporary limitation on the number of intermediaries available in the market. This condition will often come about as result of the high liqu
