Specialists and market-makers both enhance the stock market's liquidity by making a market for stocks.

Question

Quizplus · Accepted Answer

Both specialists and market-makers work to provide liquidity to the stock market by facilitating trading and making a market for stocks. Specialists are traders who work on the floor of the stock exchange and help to maintain an orderly market by buying and selling stocks on behalf of investors. Market-makers, on the other hand, are firms that have agreed to buy and sell securities at all times and serve as an intermediary between buyers and sellers. Both play important roles in providing liquidity, which helps to ensure that investors are able to buy and sell securities easily and efficiently.

Specialists and Market-Makers Both Enhance the Stock Market's Liquidity by Making