Market Maker

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Dictionary Says

Definition of 'Market Maker'

A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares. Once an order is received, the market maker immediately sells from its own inventory or seeks an offsetting order. This process takes place in mere seconds.
Investopedia Says

Investopedia explains 'Market Maker'

The Nasdaq is the prime example of an operation of market makers. There are more than 500 member firms that act as Nasdaq market makers, keeping the financial markets running efficiently because they are willing to quote both bid and offer prices for an asset.
Search results for

'Market Maker'

  • How Brokers Can Avoid A Market-Maker's Tricks

    http://www.investopedia.com/articles/financialcareers/06/mmakertricks.asp
    How Brokers Can Avoid A Market-Maker's Tricks. ... Also, if someone tries to sell 7,500
    shares to the market maker, he must buy them because his bid is posted. ...

  • Electronic Trading: The Role of a Market Maker | Investopedia

    http://www.investopedia.com/university/electronictrading/trading3.asp
    Electronic Trading: The Role of a Market Maker. ... A market is created when the designated
    market maker quotes bids and offers over a period of time. ...

  • Market Makers Vs. Electronic Communications Networks

    http://www.investopedia.com/articles/forex/06/ECNmarketmaker.asp
    ... customers. The spread is the difference between the bid and the ask price,
    and is often fixed by each market maker. Usually, spreads ...

  • What's the difference between a Nasdaq market maker and a NYSE ...

    http://www.investopedia.com/ask/answers/128.asp
    What's the main difference between a specialist and a market maker? Not much. ... What's
    the difference between a Nasdaq market maker and a NYSE specialist? ...

  • What is the difference between a broker and a market maker?

    http://www.investopedia.com/ask/answers/06/brokerandmarketmaker.asp
    ... What is the difference between a broker and a market maker? ... A market maker
    makes a profit by attempting to sell high and buy low. ...

  • Forex: Wading Into The Currency Market

    http://www.investopedia.com/articles/forex/06/FirstStepsFX.asp
    ... SEE: Forex Walkthrough Finding a Broker The first step is to pick a market maker
    with which to trade. ... Where is the FX market maker incorporated? ...

  • Forex: Wading Into The Currency Market

    http://www.investopedia.com/articles/forex/06/firststepsfx.asp
    ... SEE: Forex Walkthrough Finding a Broker The first step is to pick a market maker
    with which to trade. ... Where is the FX market maker incorporated? ...

  • The Foreign Exchange Interbank Market

    http://www.investopedia.com/articles/forex/06/interbank.asp
    ... traded. There is usually one central place back to which all trades can be
    traced and there is often one specialist or market maker. ...

  • What is the difference between a quote driven market and an order ...

    http://www.investopedia.com/ask/answers/06/quoteorderdrivenmarket.asp
    ... However, if there were one market maker for the stock, it would post its
    bid - say, $29.50 - and its ask - say, $30.50. (This would ...

  • How do I buy an over-the-counter stock?

    http://www.investopedia.com/ask/answers/06/buyOTC.asp
    ... An investor's broker will work with the applicable market maker to ensure
    that the transaction process is completed successfully. ...

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