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 ?
She stopped quail farming in 2014 because the market got flooded and the excitement died as quickly as it started, making prices dip.
Jailing Johnson, chairman of the bench David Gee said: "Shop theft is a crime that affects us all, by making prices higher in the supermarket and in shops.
The government had previously shouldered the costs of connecting services to lands, making prices affordable to citizens, but property developers were then ordered to bear these costs following the issuance of a new regulation.
But France and Spain cap rises by making prices fit an index-linked formula.
Al-Nuaimi pointed out that making prices of petroleum derivatives among the GCC countries similar to each other has been referred to study by the competent committees which will be concerned with trying to make the prices similar.
Instead of making prices fairer between men and women, this ruling would increase costs for consumers taken as a whole.
This revised edition includes the recent crisis that flooded the marketplace with cheap coffee, the surge in sales and public awareness of Fair Trade coffee, the recession and its impact on Starbucks, and the role of the internet in making prices transparent and giving growers increased marketing opportunities.
Tamworth recorded an excellent draw at promotion hopefuls York last week, but that was the first time they had scored for six games and they have won only one of their last 11 BSP outings, making prices no bigger than 13-10 look very short.
Recent analysis by Used Car Expert magazine reveals that the condition and mileage of these cars varies widely and that, combined with over-supply, is making prices volatile.
When presenting his bill, Ahmadinejad told MPs targeting subsidies could not be done without making prices 'as real as possible'.
UK exports to EU countries were up 17% for beef, and nearly 8% for lamb during the first four months of 2008, helped by the strength of the euro making prices competitive.