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Definitions from the Web

Market Maker

Definition:

A market maker is a financial institution or individual that facilitates the trading of securities in a financial market by buying and selling securities at quoted prices to ensure continuous liquidity.

Senses:

• Noun - Financial: A financial institution or individual that provides liquidity to a market by buying and selling securities at market prices.
• Noun - Trading: A participant in a financial market who is authorized to facilitate the buying and selling of securities by providing continuous quotes for bid and ask prices.

Usage:

1. Popular: Market makers play a crucial role in ensuring liquidity and smooth functioning of the financial markets. They provide continuous quotes to buy and sell securities, ensuring that there is always a market for investors to trade.

Sample Sentence: The market maker for this particular stock ensures that there are always buyers and sellers available, making it easy for investors to trade.

2. Local: In the local stock exchange, the market maker is responsible for establishing bid and ask prices for securities, and actively matching buyer and seller orders to maintain an orderly market.

Sample Sentence: The local market maker on the exchange floor facilitates the trading of stocks by maintaining a tight bid-ask spread.

Related Products:

• Financial Markets
• Market Liquidity
• Stock Trading
• Market Structure