Market makers profit from the buy-sell spread by providing liquidity.

Evidence

2. A ‘‘market maker’’ is defined as a financial intermediary who sits between markets participants who are (a) looking to buy and (b) looking to sell. Market makers enhance market liquidity by both buying and selling from these participants, seeking to make a profit from the buy–sell spread. — Kean Birch, Rethinking Value in the Bio-economy, 121

Categorization

• DEFINE: Clean working definition of a market maker, contrasted against the loose STS use of ‘capitalization’.
• XREF: Distinguishes the financial market-making sense from the assetization sense — directly relevant to the foundational assetization article. — connects to: Traders used the model’s own arbitrage logic to profit in the market. — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 731; Anomaly-based funds profit by making markets rather than trading as customers — Donald MacKenzie, An Engine, Not a Camera: How Financial…, 443; Traders manipulate spreads, delays, and prices within a status-governed relational market. — Karin Knorr Cetina & Urs Bruegger, Global Microstructures: The Virtual…, 117

Related

• Anomaly-based funds profit by making markets rather than trading as customers (similarity 0.81)

Broader Connections

• Anomaly-based funds profit by making markets rather than trading as customers #expands (0.80) — Donald MacKenzie, An Engine, Not a Camera, 443
• Traders manipulate spreads, delays, and prices within a status-governed relational market. #contradicts (0.78) — Karin Knorr Cetina & Urs Bruegger, Global Microstructures, 117
• Traders used the model’s own arbitrage logic to profit in the market. #expands (0.72) — Donald MacKenzie, An Engine, Not a Camera, 731