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dealer market

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Financial Dictionary

Dealer Market

A market where dealers are assigned for specific securities. The dealers create liquid markets by purchasing and selling against personal inventory.

Investopedia Commentary

Unlike auction markets, the benefit of this type of market is the rapid access that investors have to buyers and sellers of a particular security. The best example of a dealer market is the Nasdaq.

Related Links

Markets Demystified
The Tale Of Two Exchanges: NYSE And Nasdaq

See also: Auction Market, Liquid Market, Nasdaq, New York Stock Exchange - NYSE

Also spelled: Dealers market, dealer's market

Investopedia.com. Copyright © 1999-2005 - All rights reserved. Owned and Operated by Investopedia Inc.
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Financial Dictionary

dealer market

A market in which securities are bought and sold through a network of dealers who buy, sell, and take positions in various security issues. Compare auction market, open outcry.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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