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Informational Differences Between Limit and Market Orders for a Market Maker

Published online by Cambridge University Press:  06 April 2009

Robert M. Conroy  and
Robert L. Winkler
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Extract

Markets for exchange typically evolve over time, and the organized security exchanges in the United States have evolved in such a manner as to give specialists a major role as market makers. Specialists are responsible for maintaining a fair and orderly market in the securities listed on an exchange. They specify prices to reflect supply and demand and adjust these prices in response to shifts in supply and demand.

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 16 , Issue 5 , December 1981 , pp. 703 - 724
Copyright
Copyright © School of Business Administration, University of Washington 1981

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References

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