what is a dealer market 
a dealer market is a financial market mechanism wherein multiple dealers post prices at which they will buy or sell a specific security or instrument in a dealer market a dealer who is designated as a market maker provides liquidity and transparency by electronically displaying the prices at which it is willing to make a market in a security indicating both the price at which it will buy the security the bid price and the price at which it will sell the security the offer price bonds and foreign exchanges trade primarily in dealer markets and stock trading on the nasdaq is a prime example of an equity dealer market 