On an
exchange, the member firm that is designated as the
market maker (or
dealer for a listed
common stock). Only one
specialist can be designated for a given
stock, but dealers may be specialists for several stocks. In contrast, there can be multiple market makers in the
O.T.C. market . This member of a
stock exchange who maintains a "fair and orderly market" in one or more securities. Major functions include executing
limit orders on behalf of other exchange members for a portion of the
floor broker's commission, and buying or selling for his own account to counteract temporary
imbalances in supply and demand and thus prevent wide swings in stock
prices.