What are market makers in the stock market?

What are market makers in the stock market?

Market makers are entities that buy and sell stocks continuously to provide liquidity and ensure smooth trading. 

They help reduce price volatility by offering both buy and sell quotes, making it easier for investors to execute trades without delays.

By maintaining a balance between supply and demand, market makers improve market efficiency and prevent large price fluctuations, especially in less-traded stocks.

They play a crucial role in ensuring that stocks remain easily tradable at fair prices.

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