I know that
an order driven market is a financial market where all of the orders of both buyers and sellers are displayed, detailing the price at which they are willing to buy or sell a security and the amount of the security that they are willing to buy or sell at that price
a quote driven market is one that only displays bids and asks of designated market makers and specialists for a specific security, and in which prices are determined from quotations made by market makers or dealers.
My questions are:
- In a quote driven market, must every investor trade with a market maker? In other words, two parties that are both not market makers cannot trade between themselves directly?
Does a quote driven market only display the "best" bid and ask prices proposed by the market makers? In other words, only the highest bid price among all the market makers is displayed, and other lower bid prices by other market makers are not? Similarly, only the lowest ask price over all market makers is displayed, and other higher ask prices by other market makers are not?
In a order-driven market, is it meaningful to talk about "the current stock price", which is the price of last transaction?
For a specific asset, will there be several transactions happened at the same time but with different prices?
Does an order driven market have market makers?
What are some examples of quote driven and order driven financial markets, in which investors are commonly trading stocks and derivatives, especially in U.S.?