Investopedia

Core Liquidity Provider

Filed Under »
Dictionary Says

Definition of 'Core Liquidity Provider'

An underwriter or a market maker that is a sizable holder of a given security or that facilitates the trading of the security. Core liquidity providers ideally bring greater price stability and distribute securities to both retail and institutional investors.
Investopedia Says

Investopedia explains 'Core Liquidity Provider'

Firms that underwrite or provide the financing for equity or debt transactions and then make a market or assist in the trading of these securities are said to be core liquidity providers. Without their assistance, the number of transactions in the security would decrease and the ability of buy- and sell-side firms to accumulate or dispose of stock would be diminished.

Articles Of Interest

  1. The Working Capital Position

    Learn how to correctly analyze a company's liquidity and beat the average investor.
  2. Where do companies keep their cash?

    If you have ever looked over a company's balance sheet, you have no doubt noticed the first account under the current asset section is cash and cash equivalents. The cash account contains, as ...
  3. What is a stock ticker?

    A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the various stock exchanges. A "tick" is any change in price, whether that ...
  4. Institutional Investors

    Learn more about the advantages that financial institutions enjoy when buying and selling securities.
  5. Weighted Average

    Learn how to weigh the relative importances of data points in a calculated average.
  6. Bid-Ask Spread

    Find out more about this frequently referenced, but often misunderstood, term used to describe the price at which a stock is bought or sold at.
  7. Why Is Liquidity Important?

    Learn more on why liquidity is important to consider when examining a stock, next to its share price.
  8. Understanding The Ticker Tape

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.
  9. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.
  10. Translating Ticker Talk

    Stock tickers can say a lot about a company in just a few letters. Find out how to read them.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.
  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.
  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.
  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.
  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center