Normal Market Size

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Dictionary Says

Definition of 'Normal Market Size'

A share classification structure based on the number of shares outstanding. This determines the number of shares that a market maker can trade at the quoted price.
Investopedia Says

Investopedia explains 'Normal Market Size'

Buying or selling in amounts above the set number of shares requires price negotiation with the market maker. The Normal Market Size system reduces the effect a market maker's trading activity may have on the share price of a stock that has shares outstanding in the low thousands.

Related Definitions

  • 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 ...
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  • Outstanding Shares

    Stock currently held by investors, including restricted shares owned by the company's officers and insiders, as well as those held by the public. Shares that have been repurchased by the ...
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  • Quote

    1. The last price at which a security or commodity traded, meaning the most recent price on which a buyer and seller agreed and at which some amount of the asset was transacted. 2. The ...
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