Business and Personal Finance Dictionary

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• MAKE A MARKET
  
  A dealer who specializes in a specific security, such as a bond or stock, is said to make a market in the security. That means the dealer is ready to buy or sell the bond, or at least one round lot of the stock, at its publicly quoted price. Other dealers regularly turn to a market maker when they want to buy or sell that particular security. The overall effect of having multiple marketmakers in a particular security, which is typical of electronic markets such as the Nasdaq Stock Market (Nasdaq), is greater liquidity in the marketplace and, ideally, more competitive prices.
  
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