Make A Market

What Does Make A Market Mean?
An action whereby a dealer stands by ready, willing and able to buy or sell a particular security at the quoted bid and ask price.

Investopedia explains Make A Market
By being able to make a market allows the brokerage to fill customer orders out of the brokerage inventory, which is faster and easier than filling orders from other brokerages or investors.

Related Terms

Ask
Bid
Broker-Dealer
Exchange
Liquidity
Market Maker
Over-The-Counter - OTC
Quote
Specialist
More Related Terms

Related Links

Understanding Order Execution - Find out the various ways in which a broker can fill an order, which can affect costs.
Brokerage Functions: Underwriting And Agency Roles - Learning about these various activities can give insight into how securities are issued and traded.
Brokers and Online Trading - How do you find the right broker for your investment needs? Start by reading our broker tutorial.

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