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emielbo2 t1_iua5mbq wrote

Reply to comment by ringingbells in Is it just me, or is a a Market Makers' role in Order/Execution/Settlement confusing? Question: The CEO of Webull talked about their Market Maker, saying: "We're able to buy a share without driving up the stock 10% every time?" What does this work with Price Discovery & Supply & Demand? by ringingbells

He is describing a darkpool, not a market maker. Specifically a broker-dealer dark pool. A market maker is simply a company registered at an exchange (usually investment banks, but not always) that acts as a middleman, both buying and selling shares on the exchange so that there is enough liquidity to complete transactions. They make money by buying shares for P-1 and selling for P+1, so to say. When you place a buy order you pay slightly more than you would get if you sold that same share. Market makers earn their living on the difference between those two.

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