Arm's Length Market

Arm's Length Market - An arm's length market is a financial stock market where parties engage in transactions that are separate, having no contact with each other, when buying and selling stock securities. In most cases, the majority of investors are never aware of who they are purchasing securities from, or who they are selling them too. This allows all transactions to be conducted on equal footing and keeps it fair to all who are participating in the buy and selling of securities. This also keeps a safe distance between the company issuing the stocks and the investors buying them.