Affirmative Obligation

Dictionary Says

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.
Investopedia Says

Investopedia explains '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.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Negative Obligation

    An obligation of ...
  2. New York Stock Exchange - NYSE

    A stock exchange ...
  3. Principal

    1. The amount ...
  4. Specialist

    A member of an ...
  5. Trading Ahead

    When a ...
  6. Insider

    A director or ...
  7. Smart Money

    Cash invested or ...
  8. Zombie Titles

    A right to ...
  9. Sunshine Laws

    Regulations ...
  10. Budget Control Act - BCA

    A federal statue ...

Articles Of Interest

  1. Understanding Order Execution

    Find out the various ways in which a broker can fill an order, which can affect costs.
  2. Forex: Wading Into The Currency Market

    We go over the ground rules and available resources needed for this undertaking.
  3. How To Avoid Closing Options Below Intrinsic Value

    Find out how to get a better price for your option and increase your trading profits.
  4. An Inside Look At ETF Construction

    If you're an investor who likes to understand how and why your investment products work, this article is for you!
  5. Evaluating Your Stock Broker

    Make sure you're getting the best service by staying informed and involved.
  6. Market Makers Vs. Electronic Communications Networks

    Learn the pros and cons of trading forex through these two types of brokers.
  7. The Roles Of Traders And Investors In The Marketplace

    Discover how these two groups work together to keep the market functioning properly.
  8. Take A Tour Of The Futures Trading Pit

    Discover why controlled chaos can mean an exciting investment experience for you.
  9. Conversion Arbitrage: Introduction

    This stock/options combination helps traders take advantage of market mispricing. Find out how.
  10. Active Investment Management Misses The Mark

    Active investment management offers little advantage in the secondary capital markets.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center