>MM would not include investment bankers, stockbrokers, floor traders.
>Don't make it complicated.
Larry,
I'm not trying to make it complicated--I'm just trying to understand what a market maker is, that's all.
I looked up "market maker" in "Barrons Dictionary of Finance and Investment Terms". Under "market maker", it said to see "make a market". So I went to "make a market". It says...
"MAKE A MARKET maintain firm bid and offer prices in a given security by standing ready to buy or sell ROUND LOTS at publicaly quoted prices. The dealer is called a market maker in the over-the-counter market and a SPECIALIST on the exchanges. A dealer who makes a market over a long period is said to maintain a market."
If "standing read to buy or sell ROUND lots at publicaly quoted prices" is the definition of a market maker, then who are those ready to either buy or sell? It seems that you are saying it is only a department of some brokerage firm somewhere, and it has nothing to do with investment bankers, stockbrokers or floor traders, or investors.
If I buy a stock in the OTC market, for example, is there any way to know what "department", at what "firm", is screwing around with my market order?
Again, I'm not trying to complicate this--only trying to understand it.
Thanks for your input.
Ice |
