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Make A Price
A term used on the London Stock Exchange which refers to the obligation of a market maker to quote a bid price and an offer price on the shares for which he acts as a 'wholesaler'. Market makers' prices are quoted on the Stock Exchange Automatic Quotation Service (SEAQ) which brokers access by computer.
Market makers also indicate the number of shares in which they are willing to deal (the 'normal market size' or 'NMS') which will vary from share to share. They are obliged to honour the prices quoted as long as the deal size is within the NMS but not for deals higher than the NMS.
Submitted by: admin
Added: Wed May 31 2006
