

A market maker is a financial intermediary that provides liquidity by continuously offering to buy and sell securities at quoted prices, helping ensure smooth trading in financial markets.
Market makers earn through bid-ask spreads while facilitating trades. They reduce price volatility and improve execution speed, especially in less liquid markets.
Market makers enhance market efficiency and stability. Without them, trading costs and volatility could increase significantly.
Market makers support functioning capital markets, which indirectly influence business valuations and funding access.