Normal Market Size

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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 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.

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  1. What is the weighted average of outstanding shares? How is it calculated?

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  2. How can a company trade more shares in one day than there are shares outstanding?

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