Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Automated Bond System (ABS)

What it is:

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

How it works (Example):

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 it Matters:

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.