maker

Examples of maker in the following topics:

• Market Maker

  • Market makers provide liquidity to securities markets by submitting both bids and asks on a security.
  • They are the market makers.
  • Market makers are a company or individual that quotes both an ask price and a bid.
  • For this reason, many exchanges (such as the New York Stock Exchange and American Stock Exchange) have designated market makers for certain securities.
  • The financial reason why market makers do this is because the ask price that they submit will always be slightly higher than their bid.

• Components of a Note

  • Maker-the maker of a note is the party who receives the credit and promises to pay the note's holder.
  • The maker classifies the note as a note payable.
  • Payee-the payee is the party that holds the note and receives payment from the maker when the note is due.
  • Interest-notes generally specify an interest rate, which is used to determine how much interest the maker of the note must pay in addition to the principal.

• The Value of Analytics in Decision Making

  • Analytics help decision makers determine risk, weigh outcomes, and quantify costs and benefits associated with decisions.
  • Predictive analytics help decision makers to predict the outcome(s) of a decision before it is implemented.
  • Using these probabilities, decision makers can calculate the expected value of alternatives once risks and benefits are taken into account.
  • By carefully considering what is not known, decision makers can build confidence in the estimates that inform their choices.
  • Quantitative metrics and analysis can help decision makers make more accurate decisions and better predict risks associated with decisions.

• Determine a Course

  • A good decision maker will always try to eliminate personal biases and understand his personal risk tolerance when determining a course.
  • Once decision alternatives have been identified and analyzed, the decision maker is ready to make a choice.
  • On occasion, decision makers may believe they do not have sufficient information about a particular alternative, so additional analysis may be needed.
  • This means that decision makers may overstate the downside of an alternative, since they have a greater fear of negative consequences.
  • Evaluate the importance of bias and prospect theory in effectively ensuring decision makers arrive at the ideal option

• Evaluate the Results

  • Decision makers must evaluate the results of a decision to improve the processes and outcomes of future decisions.
  • The objective of evaluating outcomes is for the decision maker to develop insight into the decision.
  • Maintaining self-esteem also may cause decision makers to attribute good outcomes to their actions and bad outcomes to factors outside their control.
  • It can also be valuable for decision makers to step back and examine the process by which a decision was made.
  • How the decision maker dealt with uncertainty or bias can be examined in the face of the results that have transpired.

• Time Pressure as a Barrier to Decision Making

  • Time pressure forces decision makers to shift from logical processes (ideal) to intuitive processes (sub-ideal).
  • Decision makers who believe they have ample time to make a decision tend to arrive at more logically crafted decisions than those who feel as though they have an insufficient amount of time.
  • Time pressure often forces decision makers to look for intuitive shortcuts rather than logically processing all of the required data.

• Implement the Course

  • Implementing a decision requires the decision maker to make and execute a plan of action.
  • During the implementation phase, decision makers should be aware that they may be persuaded by pressures from stakeholders and employees to change their decision, or to reconsider.
  • Both coercive and normative pressures will likely be felt by the decision maker during the implementation of the decision, especially if the decision is an unpopular one.
  • However, the decision maker should fall back on the analyses that originally brought them to the decision and strive not to be swayed by these pressures.

• Types of Decisions

  • There are several reasons why the decision maker might do this:
  • Decision makers must then step back and reconsider the information and analysis they have brought to bear so far.
  • We can regard this activity as problem seeking because decision makers must return to the starting point and respecify the issue or problem they want to address.

• Defining Decision Making

  • Decision makers must gather and consider data before making a choice.
  • The decision maker may face a problem when trying to evaluate alternatives in terms of their strengths and weaknesses.
  • Greater deliberation and information gathering often takes additional time, and decision makers often must choose before they feel fully prepared.

• Personal Biases

  • Personal biases can be divisive forces within a decision processes as they often lead to less than ideal outcomes for decision makers.
  • Often times called selective search for evidence, confirmation bias occurs when decision makers seek out evidence that confirms their previously held beliefs, while discounting or diminishing the impact of evidence in support of differing conclusions.