What is the goal of a market maker?

The primary goal of a market maker is to provide continuous buy and sell quotes for securities, ensuring liquidity in the market. By offering prices at which they are willing to buy (the bid) and sell (the ask) securities, market makers facilitate trading activity. This function is crucial for enabling investors to buy and sell securities quickly, without significant delays or price fluctuations. The presence of market makers helps maintain efficient market operations since they are always ready to transact, which stabilizes prices and enhances investor confidence in the market.

In essence, market makers play a vital role by acting as intermediaries that connect buyers and sellers, thereby contributing to the overall efficiency and functionality of the financial markets.