Market making occurs when a broker or dealer attempts to provide a continuous market by maintaining an inventory of specific securities to sell to other brokerage firms and stands ready to buy reasonable quantities of the same securities at market prices.

Question

Quizplus · Accepted Answer

This is an accurate definition of market making. The market maker acts as a liquidity provider by buying and selling securities, helping to ensure sufficient supply and demand in the market.

Market Making Occurs When a Broker or Dealer Attempts to Provide