What is the difference between a market maker and a specialist in stock trading

What is the difference between a market maker and a specialist in stock trading Introduction: The Dynamic World of Stock Trading Hello and welcome to our video on the intriguing world of stock trading. Today, we'll be exploring the distinction between market makers and specialists, two entities that are pivotal to the functioning of financial markets. Market Makers: The Catalysts of Liquidity Market makers are essentially facilitators. They stand ready to buy or sell a particular stock at any given time, ensuring that there is a continuous flow of liquidity in the market. Their presence is crucial, especially in highly traded stocks, as it ensures that there is always a buyer or seller available, thus preventing any potential liquidity crunches. Specialists: The Guardians of Order Specialists, on the other hand, have a slightly different role. They are responsible for maintaining order in the market. Each specialist is assigned a specific stock or a group of stocks. Their primary objective is to ensure that trading in these stocks is fair and orderly. They do this by matching buy and sell orders, thus ensuring that the market operates smoothly. The Key Distinction: Obligation vs. Responsibility