market maker definition

market maker

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.

market maker is in the Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.

market maker appears in the definitions of the following terms: market maker spread, asked price and over the counter (OTC) market

This content can be found on the following page:

http://www.businessdictionary.com/definition/market-maker.html