market maker


Definition of market maker

: an intermediary in a stock exchange who controls buy and sell orders (as by purchase and resale) for a particular stock or group of stocks

Examples of market maker in a Sentence

Recent Examples on the Web Some officials worry that paying for orders incentivizes brokers to send stock trades to the market maker that pays them the most, rather than giving users the best trade execution. John Detrixhe, Quartz, "Robinhood’s speedy rise is shaking up the brokerage market," 19 Sep. 2020 Cantor is one of only a handful of firms that the Federal Reserve Bank of New York has designated to act as a market maker for federal securities, which means acting as Uncle Sam’s bond broker. Jeff John Roberts, Fortune, "Wall Street culture clash: When Coinbase met Cantor Fitzgerald," 3 Dec. 2020 Freedom has been a market maker in Kegoc since 2015. Alexander Sazonov,, "A 32-Year-Old Finance Tycoon Looms in Obscure Stock Market," 23 Sep. 2020 But one telling stat comes from Citadel Securities, the biggest retail market maker. Matt Egan, CNN, "This market mayhem will test Robinhood's newbie investors," 4 Sep. 2020 The market maker fills the orders at the best price that would have been available on an exchange and then, if all goes well, pockets the spread. John Detrixhe, Quartz, "How the retail trading boom is shaking up the US stock market," 23 June 2020 Robinhood also makes money on interest held in client cash accounts as well as by selling client trades to market makers. Douglas Macmillan, WSJ, "Valuation for Robinhood, Maker of App That Offers Free Stock Trades, Tops $5 Billion," 15 Mar. 2018 On Monday, March 23, New York Stock Exchange (NYSE) will close its trading floor indefinitely, with traders and market makers working remotely as concerns of contagion continue to disrupt every facet of the financial markets. Erik Sherman, Fortune, "In a first, NYSE will close its trading floor and conduct remote trading amid coronavirus pandemic," 22 Mar. 2020 Robinhood routes much of its orders to electronic market makers that engage in high-frequency trading. Matt Egan, CNN, "Robinhood trading app fined for 'failures'," 19 Dec. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'market maker.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of market maker

1962, in the meaning defined above

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Time Traveler for market maker

Time Traveler

The first known use of market maker was in 1962

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Statistics for market maker

Last Updated

26 Jan 2021

Cite this Entry

“Market maker.” Dictionary, Merriam-Webster, Accessed 24 Feb. 2021.

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