Could someone please educate me? I have a basic understanding of MM's and how they work, but how do they benefit from keeping the PPS of a particular security such as Chemtura low? Is this done to increase volume and induce buying? If say the bid was .45 and the ask .46 for Chemtura wouldn't they make the same profit? Is there any other purpose to keeping the PPS low other than to induce buying and selling. I'm a novice trader and also confused about why the bid/ask for Chemtura is not much higher than it currently is. MM's hold a supply of certain securities, so why can't they increase the bid/ask price when the BV of a security increases. I'd appreciate as much education on this subject as anyone is willing to offer!
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