What Is a Dealer Market? Things to Know about Dealer Market
A buyer and seller are never in a market together. Instead, the dealers' market makers carry out their (buy/sell) orders. The dealer serves as the counterparty for buyers and sellers in the secondary market known as the dealer market. Investors ready to accept the price can complete the transaction once the dealer, regarded as a market maker, sets the bid price. Thus, it ensures market liquidity.