InvestorsHub Logo

Carnac

11/11/10 5:58 PM

#42803 RE: bigstocksnbonds #42801

What Does Market Maker Mean?
A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares. Once an order is received, the market maker immediately sells from its own inventory or seeks an offsetting order. This process takes place in mere seconds.