Market maker

Market makers are players in the stockmarket who trade as principals and may actively try to encourage/discourage trading by changing the prices they quote to tempt buyers and sellers into the market.

In October 1997, the London Stock Exchange introduced order driven share dealing for shares in the FTSE-100 index

For shares outside the FTSE-100, the London Stock Exchange continues to operate a system of competing market markers all of whom are obliged to make a continuous two-way price, that is, to offer to buy and sell securities throughout the mandatory quote period

See Also: Online share dealing service Stockmarket Centre

Last Updated: January 2008 © Moneyextra.com

Our senior editor Robin Amlôt recommends you should consider taking independent financial advice before acting on any article. Please contact us for help with your individual circumstances if any assistance is required.