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surfkast

02/19/15 8:10 AM

#1273 RE: Hennypennyaz #1271

THE MARKET MAKER! INVESTING 101!

It's very unlikely you are always going to find someone who is interested in buying or selling the exact number of shares of the same company at the exact same time. This begs the question, how is it that you can buy or sell anytime? This is where a market maker comes in.
A market maker is a bank or brokerage company that stands ready every second of the trading day with a firm ask and bid price. This is good for you, because when you place an order to sell your thousand shares of Disney, the market maker will actually purchase the stock from you, even if he doesn't have a seller lined up. In doing so, they are literally "making a market" for the stock.

http://beginnersinvest.about.com/od/beginnerscorner/l/blmarketmakers.htm