passive market making

Passive Market Making

A situation in which an underwriter makes a bid in the secondary market to buy shares in a new issue for which the underwriter is responsible before it is fully distributed. In passive market making, the underwriter is now allowed to enter a higher bid than any competing investors. See also: Stabilization period.

passive market making

The offering by a market maker to purchase a firm's securities at the same time the market maker is acting as an underwriter of the securities in a secondary offering. The market maker is not permitted to offer a higher bid than a competing non-underwriting market maker.
References in periodicals archive ?
Deletions of NASD members * Deletions of Nasdaq or OTCBB market makers and excused withdrawals * Ex-dividend and ex-interest dates * Additions of an IPO to the OTC file for trade reporting purposes * Registration of market makers in a Nasdaq security * Reg M and Passive Market Making updates