make a market

Make A Market

An action whereby a dealer stands by ready, willing and able to buy or sell a particular security at the quoted bid and ask price.

Notes:

By being able to make a market allows the brokerage to fill customer orders out of the brokerage inventory, which is faster and easier than filling orders from other brokerages or investors.

See also: Ask, Bid, Broker-Dealer, Exchange, Liquidity, Market Maker, Over-The-Counter - OTC, Quote, Specialist

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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.

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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.