how do market makers work 
market makers operate and compete with each other to attract the business of investors by setting the most competitive bid and ask offers in some cases exchanges may have designated market makers or specialists each of whom is responsible for making a market in specific securities the specialist process exists to ensure that all marketable trades are executed at a fair price in a timely manner the bottom linemarket makers provide assurance to the investment community that trading activities can operate smoothly whether an entity or individual market makers are obligated to provide bids and offers for securities that is to make markets so that markets retain some degree of liquidity and investors can continue to buy and sell 