A market maker plays a key role in the securities market by providing trading services for investors and boosting market liquidity. Specifically, they provide bids and offers for securities, along with the market size.<\/p>" } } , { "@type": "Question", "name": "Why Do Market Makers Matter?", "acceptedAnswer": { "@type": "Answer", "text": "
They matter because they ensure that the securities markets continue to function. Market makers must commit to providing markets for securities on both the buy and the sell sides.<\/p>" } } , { "@type": "Question", "name": "How Do Market Makers Work?", "acceptedAnswer": { "@type": "Answer", "text": "
Market makers operate and compete with each other to attract the business of investors by setting the most competitive bid and ask offers. In some cases, exchanges may have designated market makers (or specialists), each of whom is responsible for making a market in specific securities. The specialist process exists to ensure that all marketable trades are executed at a fair price in a timely manner.<\/p>" } } ] } ] } ]