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Make A Market

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]
… All Rights Reserved Library of Congress Cataloging-in-Publication Data Do economists make markets?: on … and Lucia Siu 1 Chapter 2 The Social Construction of a Perfect Market: The Strawberry … en-Sologne Marie-France Garcia-Parpet 20 Chapter 3 Is Economics Performative …

How ordinary consumers make complex economic decisions: Financial literacy and retirement readinessHow ordinary consumers make complex economic decisions: Financial literacy and retirement readiness
www.worldscientific.com [PDF]
… All Rights Reserved Library of Congress Cataloging-in-Publication Data Do economists make markets?: on … and Lucia Siu 1 Chapter 2 The Social Construction of a Perfect Market: The Strawberry … en-Sologne Marie-France Garcia-Parpet 20 Chapter 3 Is Economics Performative …

The economics of wagering marketsThe economics of wagering markets
www.jstor.org [PDF]
… All Rights Reserved Library of Congress Cataloging-in-Publication Data Do economists make markets?: on … and Lucia Siu 1 Chapter 2 The Social Construction of a Perfect Market: The Strawberry … en-Sologne Marie-France Garcia-Parpet 20 Chapter 3 Is Economics Performative …

How to make a market: Reflections on the attempt to create a single market in the European UnionHow to make a market: Reflections on the attempt to create a single market in the European Union
www.journals.uchicago.edu [PDF]
… All Rights Reserved Library of Congress Cataloging-in-Publication Data Do economists make markets?: on … and Lucia Siu 1 Chapter 2 The Social Construction of a Perfect Market: The Strawberry … en-Sologne Marie-France Garcia-Parpet 20 Chapter 3 Is Economics Performative …

The “make or take” decision in an electronic market: Evidence on the evolution of liquidityThe “make or take” decision in an electronic market: Evidence on the evolution of liquidity
www.sciencedirect.com [PDF]
… All Rights Reserved Library of Congress Cataloging-in-Publication Data Do economists make markets?: on … and Lucia Siu 1 Chapter 2 The Social Construction of a Perfect Market: The Strawberry … en-Sologne Marie-France Garcia-Parpet 20 Chapter 3 Is Economics Performative …

Financial liberalization and stock market volatility in selected developing countriesFinancial liberalization and stock market volatility in selected developing countries
www.tandfonline.com [PDF]
… All Rights Reserved Library of Congress Cataloging-in-Publication Data Do economists make markets?: on … and Lucia Siu 1 Chapter 2 The Social Construction of a Perfect Market: The Strawberry … en-Sologne Marie-France Garcia-Parpet 20 Chapter 3 Is Economics Performative …

Behavioral economics: Human errors and market correctionsBehavioral economics: Human errors and market corrections
www.jstor.org [PDF]
… All Rights Reserved Library of Congress Cataloging-in-Publication Data Do economists make markets?: on … and Lucia Siu 1 Chapter 2 The Social Construction of a Perfect Market: The Strawberry … en-Sologne Marie-France Garcia-Parpet 20 Chapter 3 Is Economics Performative …



Q&A About Make A Market


Is there anything else that makes it important for a brokerage to be able to make a market?

Yes, if they are unable to do so then they will have difficulty in getting their customers' orders filled.

How long could this take?

It could take days, weeks or even months depending on how much supply and demand there is for that security. If demand exceeds supply then it will take less time but if supply exceeds demand then it will take longer for an investor's order to get filled.

Why is it important for a brokerage to be able to make a market?

It 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.

What happens when an order cannot be filled?

The order will not get filled until another investor buys or sells the security at the current price. This can take some time as investors may not want to buy or sell at that price.

What does Make A Market mean?

Make a market means to stand by ready, willing and able to buy or sell a particular security at the quoted bid and ask price.

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