If you've ever idly wondered who was on the other side of your most recent stock or options transaction, the answer is reassuringly dull: It was most likely a professional market maker whose full-time job is to be the anonymous investor on the other end of your every trade. But what is a market maker?
"Market maker" is the broad term used to describe the parties, whether firms or individuals, whose primary function is to keep markets running in a smooth and orderly manner. Their role is to be the buyer to your seller, or the seller to your buyer.
