The Law Dictionary

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MARKET MAKER Definition & Legal Meaning

Definition & Citations:

Broker, dealer, or investment firm that takes possession of, and trades in, a security as a principal, thereby assuming market and systemic risk. Continually quoting bid and offer prices, and guaranteeing full security sale or absorption at a specific price is a maker’s obligation. Their respective exchanges charge them lower-than-normal dealing fees for their services to the market after licensing them.


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