Market Maker

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 maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares. Once an order is received, the market maker immediately sells from its own inventory or seeks an offsetting order. This process takes place in mere seconds.

The Nasdaq is the prime example of an operation of market makers. There are more than 500 member firms that act as Nasdaq market makers, keeping the financial markets running efficiently because they are willing to quote both bid and offer prices for an asset.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Market Maker — Un market maker, ou « teneur de marché », est une entreprise, généralement une banque d investissement, ou une personne qui, sur un marché donné, fournit constamment : soit uniquement à sa clientèle, soit, dans certains cas, à l… …   Wikipédia en Français

  • market maker — Generally, a person who holds himself out on the financial markets on a continuous basis as being willing to deal on own account by buying and selling financial instruments against his proprietary capital at prices defined by him. In the UK, a… …   Law dictionary

  • market maker — n. a firm which maintains a stable and liquid market for a particular security by buying and selling it as circumstances require * * * …   Universalium

  • market maker — market ,maker noun count BUSINESS someone whose job is to buy and sell STOCKS and shares for other people on the STOCK MARKET …   Usage of the words and phrases in modern English

  • market maker — n. a firm which maintains a stable and liquid market for a particular security by buying and selling it as circumstances require …   English World dictionary

  • Market Maker — Als Market Maker (deutsch Marktpfleger oder auch Marktmacher) bezeichnet man einen Börsenmakler, der die Handelbarkeit (Marktliquidität) von Wertpapieren durch kontinuierliches Stellen von Geld und Briefkursen sichert und temporäre… …   Deutsch Wikipedia

  • Market-Maker — Als Market Maker (deutsch: Marktpfleger oder auch Marktmacher) bezeichnet man einen Börsenmakler, der die Handelbarkeit (Marktliquidität) von Wertpapieren durch kontinuierliches Stellen von Geld und Briefkursen sichert. Inhaltsverzeichnis 1… …   Deutsch Wikipedia

  • Market maker — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond …   Wikipedia

  • market-maker — An individual or entity that stands ready to buy or sell financial instruments at all times. Market makers quote both a bid and an offer price to the market. Market makers provide liquidity to markets. They profit from the spread between bid and… …   Financial and business terms

  • market maker — An individual or entity that stands ready to buy or sell financial instruments at all times. Market makers quote both a bid and an offer price to the market. Market makers provide liquidity to markets. They profit from the spread between bid and… …   Financial and business terms

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