Make a market

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Make a market

Dealers are said to make a market when they quote bid and offered prices at which they stand ready to buy and sell.

Make a Market

To be ready to trade at any time at the quoted price. The job of a dealer is to be able to make a market to promote liquidity for a security. When a broker-dealer makes a market, it allows the brokerage to trade from its own inventory, which is easier and less expensive than looking for other brokerages willing to trade. See also: Market maker.

make a market

To quote a bid price at which a security will be purchased and an ask price at which the security will be sold. An individual makes a market by quoting the prices at which he or she will buy and sell.

Make a market.

A dealer who specializes in a specific security, such as a bond or stock, is said to make a market in that security. That means the dealer is ready to buy or sell at least one round lot of the security at its publicly quoted price.

Other broker-dealers turn to a market maker when they want to buy or sell that particular security either for their own account or for a client's account.

Electronic markets, such as Nasdaq, tend to have several market makers in a particular security. The overall effect of multiple market makers is greater liquidity in the marketplace and more competitive pricing.

References in periodicals archive ?
As we continue our push towards exchange status and 1 billion shares a day, we pledge to continue on our mission of making markets better.
China-based customers are very enthusiastic about PFG's BEST Direct Web platform which has great advantages over competitors, making markets accessible in real time from a personal computer without the burden of downloading a large file.
His experience includes ownership and management of a diversified securities broker/dealer specializing in general retail securities brokerage, wholesale securities trading, making markets on the NASDAQ, Bulletin Board and Pink Sheets.
Before moving to CAI, Dhuri was heading the trading desk of one of the primary dealers making markets in Government of India Bonds.
By expanding into the business of making markets for Nasdaq securities, the company will be able to offer broader availability of executions services of U.
is a large independent specialist firm with extensive experience in making markets in public companies in a variety of industry sectors.
Crown meets the liquidity needs of brokers, dealers, institutions, and asset managers by making markets in over 9,500 Nasdaq and non-Nasdaq OTC securities.
Merrill Lynch has a great deal of experience making markets in stocks, and we are excited that they have decided to make markets in equity options at ISE," said Gary Katz, ISE's Chief Operating Officer.
The committee is looking for presentations on production and infrastructure for natural gas and power, also on starting over and making markets work.
Hergott, 56, is currently a member of the Chicago Board Options Exchange where for several years he was an active floor trader making markets in such stocks as 3M, Homestake Mining and Control Data.
JPMorgan has a joint lead, BNP Paribas, making markets in JECI Index-linked Notes series 2 (JECI 2), the second tranche of the highly successful JPMorgan European Credit Index-linked Notes (JECI 1) which rolled on 2nd October.
The dynamic acceleration into export markets and international alliances by the giant Brazilian mining, energy, and logistics group Companhia Vale do Rio Doce (CVRD) (BOVESPA:VALE3) (NYSE:RIO) (LATIBEX:XVALO) (Rio, Brazil) is making markets and competitors sit up after the company's moves went almost unnoticed for the past year.