• The dealer market is a transparent financial market mechanism in which several dealers publish the prices at which they are willing to buy or sell a particular security.

  • Bonds and foreign currencies are traded mainly on dealer markets.
  • Some stock exchanges, such as the Nasdaq, operate as stock dealer markets.
  • Notably, dealer markets rely on the dealer’s capital to provide liquidity for investors and to exclude the middleman, the broker, from transactions.
  • Dealer markets can be contrasted with auction markets and brokerage markets.