OTC dealer who provides continuous bids and offers for a particular security. Market makers buy and sell for their own profit and at their own risk. OTC is a negotiated market.
Unlike an exchange market where there is only one market maker per security (the specialist), there may be many market makers for an OTC security. A market maker must stand ready to buy or sell a minimum number of shares at a quoted price.
Broker-dealers may or may not act as a market maker.
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