Market

foodstuff------------------------------------------------- Market Maker Definition A  merchandise shaper is a company, or an individual, that quotes both a buy and a tidy sum out scathe in a financial instrument or commodity held in inventory, hoping to hand a profit on the bid offer spread, or turn. ------------------------------------------------- ------------------------------------------------- In currency exchange to the highest degree foreign exchange trading firms argon commercialize makers and so atomic number 18 more banks. The commercialize maker sells to and buys from its clients and is compensated by means of price differentials for the service of providing liquidity, reducing transaction be and facilitating portion out wind. ------------------------------------------------- ------------------------------------------------- In stock exchange Most stock exchanges operate on a matched bargain or order driven basis. When a buyers bid pric e meets a sellers offer price or vice versa, the stock exchanges matching system decides that a clutch has been executed. In such a system, there are no designated or official market makers, but market makers that exist.

MARKET MAKERS AT NEW YORK In the United States, the heady York Stock Exchange (NYSE) and American Stock Exchange (AMEX), among others, exteriorize Designated Market Makers, are known as specialists, who act as the official market maker for a given security. The market makers provide a required amount of liquidity to the securitys market, and conceive the other side of trades when there are s hort-term buy-and-sell-side imbalances in cu! stomer orders. In return, the specialist is granted various informational and trade execution advantages. Other U.S. exchanges, most prominently the NASDAQ Stock Exchange, squawk several competing official market makers in a security. These market makers are required to maintain two-sided markets during exchange hours and are obligated to buy and sell at their displayed bids and offers. They typically do not receive the...If you want to get a adequate essay, order it on our website: OrderCustomPaper.com

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