alpha stocks

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The most actively traded securities in the Stock Exchange Automated Quotations System (SEAQ); it was a measure of market liquidity used by the London Stock Exchange from October 1986 until January 1991, when the system was replaced by the Normal Market Size (NMS) measure of dealings in a company's shares. The system divided the approximately 4000 securities quoted into four categories, alpha, beta, gamma, and delta, according to the frequency with which they were traded. The classification defined the degree of commitment to trading that had to be provided by market makers.

Subjects: Financial Institutions and Services.

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