Normal Market Size

Normal Market Size

A share classification structure based on the number of shares outstanding. This determines the number of shares that a market maker can trade at the quoted price.

Notes:

Buying or selling in amounts above the set number of shares requires price negotiation with the market maker. The NMS system reduces the effect a market maker's trading activity may have on the share price of a stock that has shares outstanding in the low thousands.

See also: Market Maker, Outstanding Shares

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Normal Market Size (NMS)

A system that categorizes the size of transactions that are normal for a particular security and forces market makers to deal within these sizes.