national market system (NMS)

national market system (NMS) definition - business

national market system (NMS)

A centralized system for reporting transactions and quotations from all qualified market makers. A national market system has been encouraged by the SEC as a trading system that would increase competition among exchanges and market makers, thus providing investors with more liquidity and better prices. Essentially, a national market system is envisioned as a single large market in which market makers are linked by telecommunications with information being freely available. Customer orders would be automatically filled at the best available prices.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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