Market making is fundamental to modern financial markets. A market maker continuously quotes both buy and sell prices for a security, ensuring liquidity and price stability for all participants.
The Market Maker's Role
Without a market maker, a stock can suffer from wide bid-ask spreads and extreme price swings during periods of low activity. Market makers stand ready on both sides of the order book, absorbing temporary imbalances in supply and demand.
Benefits for Shareholders
Tighter spreads reduce trading costs. Higher liquidity means shareholders can exit positions at fair prices at any time. Lower volatility attracts institutional investors, which in turn supports valuations.
Regulatory Requirements
Many companies listed on the Tehran Stock Exchange are required to maintain an active market maker under securities regulations.
Kahkeshan's market-making desk provides professional, rule-compliant liquidity management for listed companies.
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