Term of the Day
Specialist
Firm refers to a
company that hires specialists in
order to represent companies listed on certain exchanges. Specialists are
members of a
stock exchange, who make a
market in the stock they trade. Each
specialist trade between five to ten stocks. They are allowed to
buy and sell
stocks in order to reduce market
volatility when there are not enough buyers or sellers, but they are not allowed to trade ahead of investors who have placed orders.