holding the market(redirected from Hold the Market)
Holding the market
Holding the Market
A normally illegal practice in which a broker places or maintains buy orders for a security whose price is rapidly falling in order to artificially inflate demand and create a price floor. The main exception to its illegality is a situation in which the SEC gives an underwriter permission to attempt to hold the market for a new issue. Even in situations where it is legal, holding the market is a high-risk practice as the broker must normally buy large numbers of shares in order to curb falling demand, and, if he/she fails to create a price floor, he/she stands to lose a great deal of money. See also: Depth.
holding the market