A market maker is a company (often a ) that quotes an ask and bid price for a with the specific objective of profiting from the difference between the two. The ask and bid price are the terms used for the buy and sell price. The difference between them is called the .
If you sell a financial securityA security is a financial instrument, such as stocks and s... More, the market makerA market maker is a company (often a broker) that quotes an... More will take the other side of your position and then seek to offset the risk by finding a buyer. Similarly, if you purchase a financial instrumentWhat are the financial instruments? A financial instrument... More, then the marketWhat are value stocks? A value company is a company that app... More maker will sell from their inventory and then seek to offset the position to find a buyer.
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