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ROLE OF MARKET MAKER IN STOCK MARKET

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INTRODUCTION Securities market always engages the attention of not only of the government but the general public as well. The Securities market is flooded with so many participants such as brokers, members, merchant bankers, and the general public, of course. Involvements of such large participants are also due to the significant role of share market in the economy, and therefore Securities market is also considered as a barometer of the economy’s financial health. Having said, one must know that the Indices in the Securities market such as Nifty or Sensex which comprises of most of the blue chip companies, which only represent shares which are active in trading, meaning thereby those shares having buy order or sell order (In technical terms, this is called high trading volume). These kinds of shares provide more liquidity to their investors. “Liquidity of stock means you can easily sell your stock because of large by order” Unfortunately, it is seen that despite having