Furthermore, Hamilton |21~ shows that market spreads and modal dealer spreads
have similar cross-sectional properties.
Several times a week, the dealer spreads
a Penthouse across the kitchen counter, flips to the stories in the Forum section and jerks off into a waist-level, flip-top lid Rubbermaid trash can.
In contrast to previous research, they find that inside dealer spreads
narrow throughout the trading day, especially near the close.
Q: And again, is that, in your professional opinion, because those market makers had three-quarter point dealer spreads and did not want to enter what were termed "unprofessional markets"?
May 31, 1994: Within one week after the release of Christie and Schultz's results, dealer spreads on four prominent Nasdaq stocks narrowed and market makers began entering odd-eighth prices quotes in those stocks.
Where limit orders dominate the specialist's spread, more of a "market spread" exists, but where few limit orders exist, the specialist spread dominates the limit orders and more of a "dealer spread