Market Maker
/ˈmɑːrkɪt ˌmeɪkər/
Definitions
- (n.) A firm or individual that actively quotes both bid and ask prices in a financial instrument, providing liquidity and facilitating trading.
The market maker ensured there was always a price at which investors could buy or sell the stock.
Forms
- market maker
- market makers
Related terms
See also
Commentary
Market makers play a critical role in securities markets by maintaining continuous bid and ask prices, which supports market efficiency and liquidity.
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