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Market1. The interaction between supply and demand to determine the market price and corresponding quantity bought and sold. 2. The determination of economic allocations by decentralized, voluntary interactions among those who wish to buy and sell, responding to freely determined market prices.MarketUsually refers to the equity market. "The market went down today" means that the value of the stock market dropped that day.Market Similar MatchesAmman Financial Market (AFM)Amman Financial Market (AFM)Established in 1976, the AFM is the only stock exchange in Jordan. Capital market imperfectionCapital market imperfectionAnything that interferes with the ability of economic agents to borrow and lend as much as they wish at a fixed rate of interest that truly reflects probability of repayment. A common source of imperfection is asymmetric information. Segmented MarketSegmented MarketA market in which there are impediments to the free flow of labor, capital, and information. Market makerMarket makerA market maker is a dealer on the London Stock Exchange, who acts as a wholesaler (i.e. quotes buy and sell prices to brokers) for the shares in which he is registered to trade as a principal. Market makers fulfil buy and sell orders from brokers, and create a marketplace for the buying and selling of shares to match supply and demand.The market maker makes a profit by committing his company's capital, aiming to buy low and sell high. There is always the possibility that he may buy high and sell low, thereby incurring a loss.The market maker who buys 10,000 shares of Marks & Spencer at £2.58 will attempt to sell them at a higher price e.g. £2.60, thereby realising a profit of £200. Conversely, he could sell stock for £2.60 and later buy it back for £2.58, again realising £200 profit. However, market forces can cause the market maker to sell stock at £2.58 then, due to high demand, have to repurchase (recoup his short position) at a higher price of £2.64, thereby losing £600.Stock prices constantly change, reflecting the supply and demand for those stocks. Low supply and high demand leads to high prices. High supply and low demand leads to lower prices.The market maker is obliged to honour the price he reflects on screen in the size he is showing. This size is often larger than the NMS, which is the minimum size in which a market maker must quote a two way price.If a broker wants to buy or sell a larger quantity of shares than the market maker is showing, i.e. showing 5x5 but the broker wants to buy 10,000 shares, the market maker may refuse to trade on these grounds. He is, however, still duty bound to sell the broker a minimum of 5,000 shares at the price shown. Furthermore, he may be able to offer him the full 10,000 shares, but the market maker can name the price. Rigged marketRigged marketManipulation of prices in a market to attract buyers and sellers. Further SuggestionsHolding the marketefficient market theory money market Marketing board Coherent Market Hypothesis main market Market letter Foreign bond market Bond market association Money market demand account (MMDA) Miss the price or market Firm market Real market Market based forecasting Market failure Securities markets emerging markets Midmarket repo market market price Market jitters Asian dollar market Capital market Money market hedge Cornering the market |
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