Market makers
This query is : Resolved
07 November 2009
What do U mean by d term "Market Makers"?
07 November 2009
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.
The Nasdaq is the prime example of an operation of market makers. There are more than 500 member firms that act as Nasdaq market makers, keeping the financial markets running efficiently because they are willing to quote both bid and offer prices for an asset.
The Nasdaq is the prime example of an operation of market makers. There are more than 500 member firms that act as Nasdaq market makers, keeping the financial markets running efficiently because they are willing to quote both bid and offer prices for an asset.
07 November 2009
even u Can take this meaning:
Market makers are individuals or representatives of firms whose function is to ensure liquidity in the securities markets, through bids and offers to the public in the absence of an offer from a counterparty. When traders place an order to buy a certain security which nobody is queuing to sell, market makers sell that security from their own portfolio or reserve. Similarly, they will buy a security in absence of other buyers.
In doing so, market orders are continuously moving, eradicating sudden surges and ditches due to buying and selling imbalance. Market makers earn profits through a spread between their buying price (bid) and their selling price (ask). The ask is always higher than the bid, allowing the market maker to profit from their inventory.
Market makers are individuals or representatives of firms whose function is to ensure liquidity in the securities markets, through bids and offers to the public in the absence of an offer from a counterparty. When traders place an order to buy a certain security which nobody is queuing to sell, market makers sell that security from their own portfolio or reserve. Similarly, they will buy a security in absence of other buyers.
In doing so, market orders are continuously moving, eradicating sudden surges and ditches due to buying and selling imbalance. Market makers earn profits through a spread between their buying price (bid) and their selling price (ask). The ask is always higher than the bid, allowing the market maker to profit from their inventory.
07 November 2009
Thanx sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Soyabean hsn code and gst rate
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Treatment of Pension ?annuity returns on PMVY
- AY 26-27 ITR-4 FILING U/S 44-ADA
- Plot of land. Cost of Acquisition
- Long Term Service award taxability in hands of company
- GSTR-4 Annual Return ! Pending Returns for F.Y. 20-21 to 22-23
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- Capital Gain on EUITY Shares
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
