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Re: Stock_Barber post# 76140

Tuesday, 03/15/2011 1:08:35 PM

Tuesday, March 15, 2011 1:08:35 PM

Post# of 141621
Not always the case.Market makers can also sell and buy for their own account.That differentiate them from an order entry firm which which acts solely on behalf of a client

The market maker is an investment company that registers with the SEC to buy and sell a particular stock on the Nasdaq.
Unlike their counterparts at the NYSE, the market makers work through a computer network rather than on the floor of a physical exchange.

Their job is, literally, to make a market in a particular security. Here is what they do:

They fill orders for their company’s customers and for their own account
They also act as dealers to profit from the difference between the bid and ask price for the stock
The Nasdaq requires market markers to provide a “two-sided quote” in the securities they