Kormarketare

Kormarketare is a term originating from Swedish that translates to "market maker" in English. In the context of financial markets, a kormarketare is an individual or firm that actively buys and sells securities, such as stocks or bonds, on a regular basis. Their primary role is to provide liquidity to the market, meaning they ensure that there are always buyers and sellers available for a given security. This continuous presence in the market helps to narrow the bid-ask spread, which is the difference between the highest price a buyer is willing to pay and the lowest price a seller is willing to accept.

Kormarketare typically operate by quoting both a bid price (the price at which they are willing to buy) and an ask price (the price at which they are willing to sell). They profit from the difference between these two prices, known as the spread, as well as from the volume of trades they execute. Their activities are crucial for the efficient functioning of financial markets, as they reduce transaction costs for other investors and facilitate smoother price discovery. Kormarketare can be individuals or larger financial institutions, and their operations are often subject to regulatory oversight.