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penn_e_pincher

08/29/17 12:52 PM

#25193 RE: PICHNPENYS2THPNTHOUS #25191

They handle order flow and provide liquidity.

07up

08/29/17 1:10 PM

#25204 RE: PICHNPENYS2THPNTHOUS #25191

Market Maker

A "market maker" is a firm that stands ready to buy and sell a particular stock on a regular and continuous basis at a publicly quoted price. You'll most often hear about market makers in the context of the Nasdaq or other "over the counter" (OTC) markets. Market makers that stand ready to buy and sell stocks listed on an exchange, such as the New York Stock Exchange, are called "third market makers." Many OTC stocks have more than one market-maker.
Market-makers generally must be ready to buy and sell at least 100 shares of a stock they make a market in. As a result, a large order from an investor may have to be filled by a number of market-makers at potentially different prices.

https://www.sec.gov/fast-answers/answersmktmakerhtm.html

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Market maker

A market maker or liquidity provider is a company or an individual that quotes both a buy and a sell price in a financial instrument or commodity held in inventory, hoping to make a profit on the bid-offer spread, or turn.[1][2] The U.S. Securities and Exchange Commission defines a "market maker" as a firm that stands ready to buy and sell stock on a regular and continuous basis at a publicly quoted price.[3]
A Designated Primary Market Maker (DPM) is a specialized market maker approved by an exchange to guarantee that he or she will take the position in a particular assigned security, option or option index.[4]

https://en.m.wikipedia.org/wiki/Market_maker