Make a market(redirected from Making a Price)
Make a market
Make a Market
make a market
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.