What is ‘Make A Market’
An action whereby a dealer stands by ready, willing and able to buy or sell a particular security at the quoted bid and ask price.
Explaining ‘Make A Market’
By being able to make a market allows the brokerage to fill customer orders out of the brokerage inventory, which is faster and easier than filling orders from other brokerages or investors.
Further Reading
- Market liquidity and volume around earnings announcements – www.sciencedirect.com [PDF]
- How ordinary consumers make complex economic decisions: Financial literacy and retirement readiness – www.worldscientific.com [PDF]
- The economics of wagering markets – www.jstor.org [PDF]
- How to make a market: Reflections on the attempt to create a single market in the European Union – www.journals.uchicago.edu [PDF]
- The “make or take” decision in an electronic market: Evidence on the evolution of liquidity – www.sciencedirect.com [PDF]
- Financial liberalization and stock market volatility in selected developing countries – www.tandfonline.com [PDF]
- Behavioral economics: Human errors and market corrections – www.jstor.org [PDF]
