Dealer Market

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Dictionary Says

Definition of 'Dealer Market'

A market where dealers are assigned for specific securities. The dealers create liquid markets by purchasing and selling against personal inventory.
Investopedia Says

Investopedia explains 'Dealer Market'

Unlike auction markets, the benefit of this type of market is the rapid access that investors have to buyers and sellers of a particular security. The best example of a dealer market is the Nasdaq.

Related Definitions

  • Auction Market

    A market in which buyers enter competitive bids and sellers enter competitive offers at the same time. The price a stock is traded represents the highest price that a buyer is willing to ...
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  • Nasdaq

    A computerized system that facilitates trading and provides price quotations on more than 5,000 of the more actively traded over the counter stocks. Created in 1971, the Nasdaq was the ...
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  • New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered the largest equities-based exchange in the world based on total market capitalization of its listed securities. Formerly run ...
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    • Liquid Market

      A market with many bid and ask offers. The market is characterized by high liquidity, low spreads, and low volatility.
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    • Secondary Market

      A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York Stock Exchange ...
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    • Primary Market

      A market that issues new securities on an exchange. Companies, governments and other groups obtain financing through debt or equity based securities. Primary markets are facilitated by ...
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    • Treasury Direct

      The market where investors can purchase treasury securities directly from the federal government Treasury. This trading system eliminates brokers and dealers, and is conducted through ...
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    • Auction

      A system where potential buyers place competitive bids on assets and services. The asset or service in question will sell to the party that places the highest bid. In most cases, sellers ...
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    • Financial Market

      Broad term describing any marketplace where buyers and sellers participate in the trade of assets such as equities, bonds, currencies and derivatives. Financial markets are typically ...
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    • Workable Indication

      A nominal quote in the municipal bond market at which price a dealer is willing to either buy or sell a particular issue. This differs from a firm quote as revisions to the offer are ...
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