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Make a market |
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Make a marketDealers are said to make a market when they quote bid and offered prices at which they stand ready to buy and sell.Make a market Similar MatchesMarket indexMarket indexMarket measure that consists of weighted values of the components that make up certain list of companies. A stock market tracks the performance of certain stocks by weighting them according to their prices and the number of outstanding shares by a particular formula. Specific issues marketSpecific issues marketThe market in which dealers reverse in securities they wish to short. Market priceMarket priceThe price for a security. As far as stocks are concerned, there is not one market price but two:the bid price - the price at which you can sell shares which you ownthe offer price - the price at which you can buy sharesOn the London markets, prices for most shares are quoted by market makers who act as 'wholesalers', and are flashed up on brokers' SEAQ screens. The quote will also show the maximum order size at which the market- maker is prepared to deal at the prices quoted (known as 'normal market size'). The difference between the bid and offer price is called the spread and is the source of the market maker's profit.Prices for the largest companies are quoted on the Stock Exchange Electronic Trading Service (SETS) which matches sellers and buyers directly and does without the need for market makers. The spread on these companies is normally smaller.Market prices are quoted on the financial pages of most newspapers and on many websites, sometimes live, sometimes delayed by 20 minutes. In the newspapers, the price quoted is neither the bid nor the offer price, but the mid price at the time the market closed on the previous day. So if a share closed at 105-109, the mid price would be 107. On some websites the price quoted is the 'last trade' price -that is the price at which the last automated trade on the previous day was made. Cash marketsCash marketsAlso called spot markets, these are markets that involve the immediate delivery of a security or instrument. Related: Derivative markets. Secondary Mortgage MarketSecondary Mortgage MarketThe buying and selling of first mortgages of trust deeds by banks, insurance companies, government agencies, and other mortgagees. This enables lenders to keep an adequate supply of money for new loans. The mortgages may be sold at full value (par) or above, but are usually sold at discount. The secondary mortgage market should not be confused with second mortgage. Further SuggestionsMarket pricesFree capital markets Money market security Complete capital market Operationally efficient market Computerized market timing system Guerrilla marketing Double auction market Negotiated markets third market Contramarket stock Index and Option Market (IOM) Efficient markets theory(EMT) Marketable title Bond market association fair market value Sensitive market Italian Derivatives Market (IDEM) Single Market Common stock market Second market National Market System Market Emerging Company Marketplace (ECM) money market |
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