Workout Market

DEFINITION of 'Workout Market'

A market maker prediction as to the trading price range that a security will occupy within a reasonable period of time. The characteristics of a workout market are seen prevalently in thin markets.

BREAKING DOWN 'Workout Market'

Prices quoted by the market maker are subject to the availability of a matching order. Also, there are usually significant mark-ups on the security being traded.

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    A market with a low number of buyers and sellers. Since few transactions ...
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RELATED FAQS
  1. Is an earnings surprise priced into the opening value by market makers or does the ...

    An earnings surprise is an event where the earnings of a company are greater or lower than the predictions put forth by analysts, ... Read Answer >>
  2. What is the difference between a quote driven market and an order driven one?

    The difference between these two market systems lies in what is displayed in the market in terms of orders and bid and ask ... Read Answer >>
  3. What's the difference between a Nasdaq market maker and a NYSE specialist?

    What's the main difference between a specialist and a market maker? Not much. Both the New York Stock Exchange (NYSE) specialist ... Read Answer >>
  4. What is the difference between markup and gross margin?

    Read more about the key differences between a company's gross margin and its pricing markup, two rough indicators of business ... Read Answer >>
  5. A market maker in the stock ABCD has filled a portfolio over time with prices as ...

    C is closest. Mark-up rules of fair practice on Nasdaq require market pricing. The NASD views markups in excess of 5% above ... Read Answer >>
  6. What types of stocks have a large difference between bid and ask prices?

    Find out which factors influence bid-ask spread width. Learn why some stocks have large spreads between bid and ask prices, ... Read Answer >>
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