A brokerage or bank that maintains a firm bid and ask price in a given security by standing ready, willing, and able to buy or sell at publicly quoted prices (called making a market). These firms display bid and offer prices for specific numbers of specific securities, and if these prices are met, they will immediately buy for or sell from their own accounts. Market makers are very important for maintaining liquidity and efficiency for the particular securities that they make markets in. At most firms, there is a strict separation of the market-making side and the brokerage side, since otherwise there might be an incentive for brokers to recommend securities simply because the firm makes a market in that security.
Related information about market maker:
- Market maker - Wikipedia, the free encyclopedia
A market maker is a company, or an individual, that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a ...
- Market Maker Definition | Investopedia
A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market ...
- Market Maker
Mar 17, 2000 ... Market Maker. A "market maker" is a firm that stands ready to buy and sell a particular stock on a regular and continuous basis at a publicly ...
- University of Illinois MarketMaker
Connecting willing markets and quality sources of food from farm and fisheries to fork in Illinois.
- What is a Market Maker and How do Market Makers Make Money
Market makers are banks and brokerages which stand by all hours of the trading day with a firm ask and bid price on a stock. They are compensated by the ...
- Who Are Market Makers? by OptionTradingpedia.com
A "Market Maker" can be an individual or representatives of a firm whose ... In the market maker system, market makers compete with one another to buy or sell ...
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If you are using Level 2 Quotes you can now find out who the Market Maker is that ... Simply click on the letter below that their Market Maker symbol begins with.
- market maker - The Free Dictionary
(Economics, Accounting & Finance / Stock Exchange) a dealer in securities on the London Stock Exchange who buys and sells as a principal and since 1986 ...