Market Tone

Market Tone - Market Tone is an indicator of the state of the securities market, calculated by looking at trading activity, and price fluctuations to gauge how well or how poor the securities market is doing. Market tone can pressure the type of transactions that investors make when dealing securities. Concrete prices and increased trading activity usually indicate a good market tone. Waning prices and trading activity indicate a poor market tone. It is a second offering following a tender offer, allowing institutional investors to obtain a controlling interest, at a price higher than the original offer. They are fairly common in takeovers.