Market Maker

A market maker is a company, or an individual, which provides market liquidity buying and selling securities. A market maker quotes both a buy and a sell price in a financial instrument, hoping to make a profit on the bid-offer spread, or turn.

Market Maker

A market maker is a company, or an individual, which provides market liquidity buying and selling securities.

 


Application of Market Maker

A market maker quotes both a buy and a sell price in a financial instrument, hoping to make a profit on the bid-offer spread, or turn.

 The U.S. Securities and Exchange Commission defines a ‘“market maker’” as a firm that stands ready to buy and sell stock on a regular and continuous basis at a publicly quoted price.



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