request for explanation for a sentence

[ann41811]

I don't understand the meaning of a part of the following sentence, would anyone explain a bit more for me? thx

Where Gray makes a market in stocks, he has been giving Rome a lower price for personal purchases and a ........

could any one tell me what does the bold part mean?

[jeremy.h]

I don't understand the meaning of a part of the following sentence, would anyone explain a bit more for me? thx

Where Gray makes a market in stocks, he has been giving Rome a lower price for personal purchases and a ........

could any one tell me what does the bold part mean?

Sure. In the UK, Stocks and Shares are bought and sold in a Stock Market - the main one being the London Stock Exchange.

The firms that trade in stocks and shares are called Market Makers and Brokers. Brokers act on behalf of customers: they "go" to the exchange (usually electronically or by phone) to buy or sell shares from/to Market Makers. The market makers set the price, and as such are said to "make a market". They will quote both a buying price and a selling price - the two are different and this margins is partly how the Market Maker earns their profits.

The prices quoted are kept in check because market makers compete with each other to "make a market" in the popular stocks.

Hope that answers the question. If anyone wants to know more about the Stock Markets and how stocks and shares work, please ask and I'll do my best to help.


Jeremy

[David L.]

What is the difference between a broker and a market maker?
A broker is an intermediary who has a license to buy and sell securities on a client's behalf. A market maker, on the other hand, is an intermediary that is willing and ready to buy and sell securities for a profitable price.

A broker makes money by bringing together securities' buyers and sellers. Brokers have the authorization and expertise to buy securities on an investor's behalf... A flat fee or percentage-based commission is given to the broker for carrying out a trade and finding the best price for a security. Because brokers are regulated and licensed, they have an obligation to act in the best interests of their clients.

A market maker makes a profit by attempting to sell high and buy low. Market makers establish quotes whereby the bid price is set slightly lower than listed prices and the ask price is set slightly higher in order to earn a small margin...Market makers essentially act as wholesalers ...the prices they set reflect market supply and demand.