Normal Market Size

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.

BREAKING DOWN '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.

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RELATED FAQS
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    Find out why shareholders should know how many outstanding shares have been issued by a corporation, and learn what happens ... Read Answer >>
  2. What is the weighted average of outstanding shares? How is it calculated?

    The amount of shares outstanding in a company will often change due to a company issuing new shares, repurchasing and retiring ... Read Answer >>
  3. What is the difference between weighted average shares outstanding and basic weighted ...

    Outstanding shares refers to stock that is currently held by investors, including shares held by the public, and restricted ... Read Answer >>
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    Calculating financial ratios can help investors understand a company's financial position, but only when a knowledge of various ... Read Answer >>
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