Automated Bond System (ABS)

Written by:
Image
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades.

Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers. While there, Paul authored and edited thousands of financial research briefs, was published on Nasdaq. com, Yahoo Finance, and dozens of other prominent media outlets, and appeared as a guest expert at prominent radio shows and i...

View all posts
Updated January 16, 2021

What is an Automated Bond System (ABS)?

The Automated Bond System (ABS) is a computerized platform that tracks the prices for inactive bonds on the New York Stock Exchange (NYSE).

How Does an Automated Bond System (ABS) Work?

Many bonds on the NYSE do not experience much price movement due to exceptionally low volume levels. As a result, the market is practically non-existent. The Automated Bond System automatically records any and all movements in the bid and ask prices for inactive bonds until they are bought, sold, or canceled.

Why Does an Automated Bond System (ABS) Matter?

Though rarely traded, inactive bonds are still valid for sale and purchase. The ABS ensures that the purchase and sale prices for inactive bonds are available for potential investors.

Ask an Expert about Automated Bond System (ABS)
At InvestingAnswers, all of our content is verified for accuracy by Paul Tracy and our team of certified financial experts. We pride ourselves on quality, research, and transparency, and we value your feedback. Below you'll find answers to some of the most common reader questions about Automated Bond System (ABS).
Be the first to ask a question

If you have a question about Automated Bond System (ABS), then please ask Paul.

Ask a question

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 2 million monthly readers.

If you have a question about Automated Bond System (ABS), then please ask Paul.

Ask a question Read more from Paul

Read this next

Paul Tracy - profile
Ask an Expert about Automated Bond System (ABS)

By submitting this form you agree with our Privacy Policy

Share
close
Don't Know a Financial Term?
Search our library of 4,000+ terms