"Cannot compete"

Definition:

In the context of general equities, cannot accommodate customers at that price level (i.e., compete with other market makers), often because there is no natural opposite side of the trade.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Arizona Stock Exchange

A single price auction exchange for equity trading that allows anonymous buyers and sellers to trade at low transaction costs.

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