Wholesale Market


Wholesale Market

1. The market for the sale of goods to a retailer. That is, a wholesaler receives large quantities of goods from a manufacturer and distributes them to stores, where they are sold to consumers. A wholesaler is generally able to extract a better price from the manufacturer because it buys so many good relative to an individual retailer. In theory, this enables the retailer to sell the good at a better price for the consumer. See also: Economies of scale.

2. The market for the sale of securities to institutional investors rather than individuals.