Market making is a crucial financial service where a firm, known as a market maker, actively participates in the buying and selling of a company’s shares. The primary goal is to provide liquidity by quoting both buy and sell prices for the stocks at all times. This continuous trading activity ensures that there is always a buyer and seller for the stock, which helps in maintaining a stable market and minimizing the gap between the bid and ask prices.
Market makers ensure that there is always a buyer and seller for your stock, minimizing delays and making it easier for investors to trade.
By narrowing the gap between bid and ask prices, market makers help in reducing the spread, leading to fairer and more stable pricing of your stocks.
Continuous trading activity increases the visibility of your stocks, attracting more investors and potentially boosting the stock’s market profile.
A liquid and stable market fosters investor confidence, making your stock more attractive to both retail and institutional investors.