Why do we need market makers in the NASDAQ?

Discussion in 'Trading' started by jaed, Jun 22, 2007.

  1. jaed

    jaed

    Are market makers really that important in stock exchanges like NASDAQ?

    Is there an exchange where the market maker has been replaced by an automated system of sorts such that buy and sell orders can always be matched?

    Or does there always have to be a market maker in stock exchanges so that buyers can always buy shares and sellers can always sell shares?
     
  2. As far as I know there are "market makers" in Nasdaq.
    Altough they are computer programs and not human beings.