Affirmative Obligation


DEFINITION of 'Affirmative Obligation'

An obligation of NYSE specialists to enter the market on a particular security (either by posting or bidding and ask) when there is not sufficient market demand and supply to efficiently match orders.

BREAKING DOWN 'Affirmative Obligation'

The affirmative obligation requires specialists to create a market for a security when public demand or supply is ineffective and can not create it for itself.

  1. Principal

    1. The amount borrowed or the amount still owed on a loan, separate ...
  2. Specialist

    A member of an exchange who acts as the market maker to facilitate ...
  3. Trading Ahead

    When a specialist trades securities for his or her own firm's ...
  4. Negative Obligation

    An obligation of NYSE specialists to remain on the sidelines ...
  5. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  6. Crowding Out Effect

    An economic theory stipulating that rises in public sector spending ...
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