holding the market

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Holding the market

The illegal practice of maintaining and/or placing a sufficient number of buy orders to create price support for a security or commodity in an amount sufficient to stabilize a downward trend.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

holding the market

See peg.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.