An individual or entity that stands ready to buy or sell financial instruments at all times. Market makers quote both a bid and an offer price to the market. Market makers provide liquidity to markets. They profit from the spread between bid and offer prices as well as from changes in market prices. Market makers adjust their bid or offer prices depending upon positions that they hold and/or upon their outlook for changes in prices. American Banker Glossary
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A market-maker is a person or firm authorised to create and maintain a market in a security. Market-makers commit themselves to always being ready to deal in the range of stocks for which they are registered. Exchange Handbook Glossary
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A Securities firm which is obliged to offer to buy and sell securities in which it is registered throughout the mandatory quote period. London Stock Exchange Glossary
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A legal entity that trades for its own account. A market maker must at all times display bid and ask prices, for which minimum quantities and maximum spreads are defined instrument by instrument. A market maker must also meet minimum volume requirements in the contract( s) in which it makes a market. In return, market makers pay lower transaction fees. NYSE Euronext Glossary
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market-maker UK US (also market maker) noun [C] (WRITTEN ABBREVIATION MM) STOCK MARKET
► a person or company that continuously buys and sells shares in particular companies for particular prices: »
The proposal requires a company trading more than 1% of a stock's volume to be listed as a market maker for that stock.
Financial and business terms. 2012.