Normal Market Size

Normal Market Size
A share classification structure based on the number of shares outstanding. This determines the number of shares that a market maker can trade at the quoted price.

Buying or selling in amounts above the set number of shares requires price negotiation with the market maker. The Normal Market Size system reduces the effect a market maker's trading activity may have on the share price of a stock that has shares outstanding in the low thousands.


Investment dictionary. . 2012.

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  • Normal Market Size — ( NMS) A system that categorizes the size of transactions that are normal for a particular security and forces market makers to deal within these sizes. Bloomberg Financial Dictionary * * *    The number of stocks that can be purchased without… …   Financial and business terms

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  • minimum quote size — The smallest quantity at which a normal market maker is allowed to quote at for a SEAQ security. It is defined as 1 W the normal market size ( NMS) of the stock. For example, if a stock has a NMS of 25,000, a market maker registered in the stock… …   Financial and business terms

  • lesser SEAQ size — The quantity of shares up to which a reduced size market maker must be prepared to deal in stocks in which they are registered. It is usually 50% of the normal market size. Dresdner Kleinwort Wasserstein financial glossary …   Financial and business terms

  • Normal distribution — This article is about the univariate normal distribution. For normally distributed vectors, see Multivariate normal distribution. Probability density function The red line is the standard normal distribution Cumulative distribution function …   Wikipedia

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