Concept information
Preferred term
market maker
Definition
- A market maker is a bank or brokerage company that continuously publicly displays (quotes) ask and bid prices (for a guaranteed number of shares) at which they will sell or buy during the trading days. This financial operator ensures the liquidity and efficiency of the financial markets (making easier the trade of blocks of shares) and, therefore, reduces the transaction costs. [Source: Encyclopedia of Business in Today's World; Market Maker]
Broader concept
Belongs to group
URI
https://concepts.sagepub.com/social-science/concept/market_maker
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