DailyStocks.com

Sign up   Log In
Lost Password?
MyDailyStocks
Set Home Page
What's New
Site Map
Help
FAQ
  
GLOSSARY STOCK ANALYSIS INSIDER BUYS PRODUCT REVIEWS EDUCATION SEARCH
Symbol:
Bookmark and Share

MARKET WATCH
DayTrading Portal
Free Stock Charts
Free Technical Analysis
REVIEWS
Online Brokers Review 2014
Investors Daily
Top 20 Baby Boomer WebSites
SEARCH ENGINES
Online Courses
Financial Advisers
SEC filings
Finance Jobs
Brand Reviews Only
Start-up Content Only
GLOSSARY: Enter search term:
Browse dictionary by letter: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Glossary Term: MARKET MAKER

Definition(s) for MARKET MAKER:


1. ) Brokerage and securities firms that are required by the rules of a stock market or exchange to both buy and sell securities of a quoted company, for which they act as market marker, at bid and offer prices which they quote. All Nasdaq-traded and EURONEXT-

2. ) A broker/dealer who is registered to trade in a given security on the NASDAQ.

3. ) A Securities firm which is obliged to offer to buy and sell securities in which it is registered throughout the mandatory quote period.

4. ) Market-making is a critical component in the development of liquid markets. Market makers do not attempt to profit from predicting the future trends in prices. Rather, their focus is to identify the equilibirum price at which demand and supply are balanced at a given moment.After correctly identifying the equilibrium price, the market maker offers a two-way price (ie. bid and offer) and thus providing liquidity to the market and supplies prices for buyers and sellers. These market makers are required to maintain two-sided markets during exchange hours and are obligated to buy and sell at their displayed bids and offers.The reward is the benefit of spread between bid and offer prices. By selling to and buying from different people, the market makers get the benefit of spread between his buying (ie. bid) and his selling (ie. offer) price.



Content Library
News
Insider Buys and Activist Buys
RESEARCH
Stock Search Engine
Guide to Financial Sites
FAQ
Investors Research Portal
Glossary
Company Overviews
Forums
Work with DailyStocks
License our Glossary
Write for us
About us
Feedback
Partners & Sponsors
InvestingChannel
COPYRIGHT© 1997-2012 DailyStocks. All Rights Reserved. Privacy Policy.
Link to this page http://www.dailystocks.com/glossary_words/MARKET%20MAKER.htm, notify us and we will consider your web site to our directory