One-Sided Market


DEFINITION of 'One-Sided Market'

When the market for a security only shows either one bid or one ask.

BREAKING DOWN 'One-Sided Market'

Market makers are required to maintain a two-sided market where both a bid and an ask price are shown to investors.

  1. Primary Dealer

    A pre-approved bank, broker/dealer or other financial institution ...
  2. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  3. Two-Sided Market

    A market in which market makers (or specialists) are required ...
  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 are the determinants of a stock's bid-ask spread?

    Stock exchanges are set up to assist brokers and other specialists in coordinating bid and ask prices. The bid price is the ... Read Full Answer >>
  2. What do the "BxA" numbers on my brokerage's trading screen mean?

    The letters 'B' and 'A' in the notation BxA refer to bid and ask, respectively. When you look at online stock quote data, ... 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 >>
  6. What is the difference between the QQQ ETF and other indexes?

    QQQ, previously QQQQ, is unlike indexes because it is an exchange-traded fund (ETF) that tracks the Nasdaq 100 Index. The ... Read Full Answer >>

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