DEFINITION of 'Make A Market'

An action whereby a dealer stands by ready, willing and able to buy or sell a particular security at the quoted bid and ask price.


By being able to make a market allows the brokerage to fill customer orders out of the brokerage inventory, which is faster and easier than filling orders from other brokerages or investors.

  1. Bid Wanted In Competition - BWIC

    A situation where an institutional investor submits its bond ...
  2. Note Auction

    A formal bidding process that is scheduled on a regular basis ...
  3. Price Improvement

    Attaining a higher bid price, if you are selling a stock, or ...
  4. Bid Price

    The price a buyer is willing to pay for a security. This is one ...
  5. Brokerage Company

    A business whose main responsibility is to be an intermediary ...
  6. Best Bid

    The highest quoted bid for a particular trading instrument among ...
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