Normal Market Size

AAA

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.

RELATED TERMS
  1. Outstanding Shares

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

    A broker-dealer firm that accepts the risk of holding a certain ...
  3. Quote

    1. The last price at which a security or commodity traded, meaning ...
  4. Bulldog Market

    A nickname for the foreign bond market of the United Kingdom. ...
  5. Float Shrink

    A reduction in the number of a publicly traded company’s shares ...
  6. Capital Strike

    A refusal of businesses to invest in a particular sector of the ...
Related Articles
  1. The Basics Of Outstanding Shares And ...
    Investing Basics

    The Basics Of Outstanding Shares And ...

  2. What is the weighted average of outstanding ...
    Options & Futures

    What is the weighted average of outstanding ...

  3. How can a company trade more shares ...
    Active Trading Fundamentals

    How can a company trade more shares ...

  4. An Introduction to Government Loans
    Economics

    An Introduction to Government Loans

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center