But some entities, such as the New York Stock Exchange (NYSE), have what's called a designated market maker (DMM) system instead. Previously referred to as specialists, DMMs are essentially lone ...

Market makers typically operate on major exchanges, such as the New York Stock Exchange (NYSE) or Nasdaq, where they help maintain market efficiency by narrowing the bid-ask spread-the difference ...

Let's dive into how market makers operate, why they're important to the stock market, and how they make money. Market makers are usually banks or brokerage companies that provide trading services.