Write Out


DEFINITION of 'Write Out'

A dual trade transaction enacted by a specialist in an individual stock issue. The first trade in a write out will be between the specialist and a floor trader, using the specialist's own inventory of stock, which is sold to the trader. The trader then executes the second part of the trade by transacting the same number of shares with an end client or firm.


Specialists are given daily inventories of stock to use as they see fit to maintain an orderly market in the stocks in which they make markets. By stepping in to purchase or sell shares as needed, they can ensure a smooth and orderly market, even during rocky trading days. The advent of electronic trading platforms has limited the need for specialists and write outs, but so far, machines have not completely erased the need for people on the trading floor.

  1. Specialist

    A member of an exchange who acts as the market maker to facilitate ...
  2. Orderly Market

    Any market in which the supply and demand are reasonably equal. ...
  3. Order

    An investor's instructions to a broker or brokerage firm to purchase ...
  4. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  5. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  6. Adjusted Gross Income - AGI

    A measure of income calculated from your gross income and used ...
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  1. 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 Full Answer >>
  2. 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 >>
  3. Who employs the specialists at New York Stock Exchange (NYSE)? Do they work for themselves, ...

    Before we address this question, let's review what specialists do. Specialists are people on the trading floor of an exchange, ... Read Full Answer >>
  4. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  5. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  6. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>

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