Market maker

Market maker,

Definition of Market maker:

  1. Broker, dealer, or investment firm that assumes market risk (systemic risk) by taking possession of, and trading in, a security as a principal. Market makers are obliged to continually quote bid and offer prices, and to guaranty the full sale or absorption of the security at a certain price. They are licensed by their respective exchanges and are charged lower-than-normal dealing fees for their services to the market.

  2. A dealer in securities or other assets who undertakes to buy or sell at specified prices at all times.

How to use Market maker in a sentence?

  1. This would allow market-makers to adjust prices for other securities effectively as demand and supply conditions change.

Meaning of Market maker & Market maker Definition