Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

market-making

Read a random definition: intent-to-use application (ITU)

A quick definition of market-making:

Market-making is when a broker-dealer sets the prices for stocks that are not traded on a stock exchange. They do this by reporting the prices they are willing to buy and sell the stocks for. The broker-dealer buys and sells the stocks for their own account, which means they accept offers to both buy and sell the stocks. This practice is regulated by the NASD and the SEC.

A more thorough explanation:

Definition: Market-making is the process of setting prices for securities that are not traded on a formal exchange by providing bid-and-asked quotations. A broker-dealer who engages in market-making buys and sells securities for its own account, and accepts both buy and sell orders.

Example: Let's say you want to buy shares of a small company that is not listed on a major stock exchange. You contact a broker-dealer who is a market-maker for that company's stock. The market-maker provides you with a bid-and-asked quotation, which shows the price at which they are willing to buy and sell the stock. You decide to buy the stock at the quoted price, and the market-maker sells it to you from their own inventory.

Explanation: Market-making is an important function in the financial markets because it provides liquidity for securities that are not traded on formal exchanges. Market-makers help to ensure that buyers and sellers can transact at fair prices, and they also help to reduce the bid-ask spread (the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept). By buying and selling securities for their own account, market-makers take on some risk, but they also have the potential to earn profits from the bid-ask spread.

market-maker | market manipulation

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
WorthlessAttractiveZombie
7:44
My berkeley paragraph finally disappeared. I definitely think it is just an indicator that they are actively reviewing files, and does not mean anything about A, WL, or Rs
WorthlessAttractiveZombie
7:46
Also has anyone's date disappeared for W&L? Mine did last night
7:55
@WorthlessAttractiveZombie: mine did yesterday morning
7:56
Oops sorry I meant Vilanova. Mine disappeared last week
LSD+ is ad-free, with DMs, discounts, case briefs & more.