Make a Market

Make a Market – A market maker or a Jobber is the one who deals in a particular share and maintains a firm bid on the particular share by his/her inclination to buy or sell market lots at quoted prices and hence makes a market in that particular share. Doing this over a period of time makes the person maintainer of the market.

Each market maker competes for the bulk order flow of shares by the means of displaying quotations for a fixed number of shares in the market. Once the order is received, the maker of market or Jobber sells shares from his own inventory and the entire process is completed in a matter of few seconds. There is a recent regulation under the Bombay Stock Exchange that each and every company that has a subscribed capital of more than 3 crores must mandatorily have a market maker on the stock exchange.

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An impressive and large scale example of market makers is Nasdaq. There are over 500 member firms in Nasdaq that operate as numerous market makers and keep the financial market there up and running as they quote for buying and selling of shares.

Edited and Updated 08th March 2014

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