what is an open market transaction 
an open market transaction is an order placed by an insider after all of the appropriate documentation has been filed with the securities and exchange commission sec to buy or sell restricted securities openly on an exchange an open market transaction is a legal way for an individual with insider information of their company to trade securities without violating insider trading laws understanding an open market transactionthe sec defines an insider as an officer or director of a public company or an individual or entity owning more than 10 of a company s stock 1