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.

  1. Outstanding Shares

    A company's stock currently held by all its shareholders, including ...
  2. Quote

    1. The last price at which a security or commodity traded, meaning ...
  3. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  4. Futures Market

    An auction market in which participants buy and sell commodity/future ...
  5. Capital Markets

    Capital markets are markets for buying and selling equity and ...
  6. Equity Market

    The market in which shares are issued and traded, either through ...
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  1. 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 Full Answer >>
  2. How can a company trade more shares in one day than there are shares outstanding?

    The number of shares traded in a single day can be greater than the number of a company's outstanding shares, but this is ... Read Full Answer >>
  3. Why would a corporation issue convertible bonds?

    A convertible bond represents a hybrid security that has bond and equity features; this type of bond allows the conversion ... Read Full Answer >>
  4. What is the difference between shares outstanding and floating stock?

    Shares outstanding and floating stock are different measures of the shares of a particular stock. Shares outstanding is the ... Read Full Answer >>
  5. What is the difference between market risk premium and equity risk premium?

    The only meaningful difference between market-risk premium and equity-risk premium is scope. Both terms refer to the same ... Read Full Answer >>
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