Make A Market

AAA

DEFINITION of 'Make A Market'

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
  1. Over-The-Counter - OTC

    A security traded in some context other than on a formal exchange ...
  2. Quote

    1. The last price at which a security or commodity traded, meaning ...
  3. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  4. Specialist

    A member of an exchange who acts as the market maker to facilitate ...
  5. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  6. Ask

    The price a seller is willing to accept for a security, also ...
Related Articles
  1. Brokers

    Brokerage Functions: Underwriting And ...

  2. Investing Basics

    Understanding Order Execution

  3. Options & Futures

    Brokers and Online Trading

  4. Explain the logic behind government loans, how they work, why are they so big in the U.S and how they have an influence in the economy of the U.S and potentially abroad
    Economics

    An Introduction to Government Loans

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center