Series 14: 2.2. Market Makers

Taken from our Series 14 Online Guide

2.2. Market Makers

When dealers assume the risk of buying or selling out of their own account at posted bid and ask prices, they are creating a market for that security. For this reason, they are also called market makers. All Nasdaq and OTC securities are traded through market makers, which provide liquidity and price discovery for buyers and sellers of that security.

Multiple mark

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