Dictionary of Finance and Investment Terms: registered competitive market maker
registered competitive market maker
- securities dealer registered with the National Association of Securities Dealers (NASD) as a market maker in a particular Over The Counter stock-that is, one who maintains firm bid and offer prices in the stock by standing ready to buy or sell round lots. Such dealers must announce their quotes through NASDAQ, which requires that there be at least two market makers in each stock listed in the system; the bid and asked quotes are compared to ensure that the quote is a representative spread. See also make a market; market maker.
- registered competitive trader on the New York Stock Exchange. Such traders are sometimes called market makers because, in addition to trading for their own accounts, they are expected to help correct an imbalance of orders. See also registered equity market maker.
