Make a market

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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.

Make a Market

To be ready to trade at any time at the quoted price. The job of a dealer is to be able to make a market to promote liquidity for a security. When a broker-dealer makes a market, it allows the brokerage to trade from its own inventory, which is easier and less expensive than looking for other brokerages willing to trade. See also: Market maker.

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.

Make a market.

A dealer who specializes in a specific security, such as a bond or stock, is said to make a market in that security. That means the dealer is ready to buy or sell at least one round lot of the security at its publicly quoted price.

Other broker-dealers turn to a market maker when they want to buy or sell that particular security either for their own account or for a client's account.

Electronic markets, such as Nasdaq, tend to have several market makers in a particular security. The overall effect of multiple market makers is greater liquidity in the marketplace and more competitive pricing.

References in periodicals archive ?
That's a dead end, making markets affected by it sclerotic, uncompetitive, and less innovative in the long run.
According to the counselor, investors find regulations in the Philippines to be too 'burdensome,' making markets in Vietnam and other Southeast Asian nations far more competitive.
For the last few decades there has been a broad consensus among those in the antitrust community around the world that competition law should promote some concept of consumer welfare; that competition law is primarily about making markets work for consumers, ACCC Chair Mr Sims said.
Making markets work for the benefit of millions of people is what the CMA is all about.
20), which has been making markets jittery as the incoming leader of the country's most powerful nation had won on a platform of protectionism in trade and labor.
Meanwhile, traders in Islamabad have termed the governments decision of making markets closed early an imprudent move, arguing that they were not taken on board in this regard.
CFE, a wholly-owned subsidiary of CBOE Holdings, offers an all-electronic, open-access market model, with traders providing liquidity and making markets.
Crisil said, 'This showcases Crisil's continued commitment towards making markets function better and enabling innovation in domestic debt markets.
PLANS making markets a main attraction in County Durham towns are being finalised.
According to the company, the solution addresses the present and future challenges of making markets in listed derivatives, including the need to manage low-latency quoting strategies across multiple markets from a single interface.
The documentaries are expected to reflect the vision of the Pakistani Youth on distributing the benefits of Economic Growth to the marginalized and vulnerable sections of our society, and making markets work for the poor, especially for youth.
That's the sobering message of a report issued by the Middle East Youth Initiative, a joint project of the Dubai School of Government and the Wolfensohn Centre for Development at the Brookings Institution in the US -- Missed by the Boom, Hurt by the Bust: Making Markets Work for Young People in the Middle East.