Topic summary
Market makers
Extracted from the Wikipedia article Market maker.
In stock exchange
Market makers that stand ready to buy and sell stocks listed on an exchange, such as the New York Stock Exchange (NYSE) or the London Stock Exchange (LSE), are called "third market makers". Most stock exchanges operate on a "matched bargain" or "order driven" basis. When a buyer's bid price meets a seller's offer price or vice versa, the stock exchange's matching system decides that a deal has been executed. In such a system, there may be no designated or official market makers, but market makers nevertheless exist.