A thin market is one in which there are few stock market participants willing to buy or sell a security. In this case, there can be a significant spread between the bid and ask prices, and the introduction of large buy or sell orders can have a significant impact on the security's price. As a result, the presence of a thin market is associated with high price volatility. Investors generally avoid securities with thin markets because they may have to purchase securities at inflated prices only to see a sharp price drop when they offer to sell the securities.