What is a "market maker"? A market maker refers to a securities operating legal person with certain strength and credibility acting as a licensed dealer in the securities market who continuously reports the buying and selling of certain specific securities to public investors. price (i.e. two-way quotation), and accept the buying and selling requirements of public investors at this price, and conduct securities transactions with investors using its own funds and securities. Market makers maintain market liquidity through this continuous buying and selling to meet the investment needs of public investors. The market maker system is a market trading system. A simple description is: quote a price and be able to buy or sell at this price. It is a securities trading system that is different from the bidding trading method and is generally used in the over-the-counter trading market. The market maker system consists of one or more market makers responsible for providing bilateral quotations for buying and selling. Investors' buying and selling orders will be transmitted to and traded with the market makers. Therefore, the market makers are responsible for maintaining price stability and market liquidity. . The market maker system is a quotation-driven trading mechanism. Different from the implicit quotation in auction transactions, the market maker makes explicit two-way quotations for buying and selling at the same time, and realizes buying and selling transactions at the price it actively quotes. As long as If investors are willing to buy, market makers must sell, or as long as investors are willing to sell, market makers must buy. The situation is similar to Chinese residents buying and selling foreign exchange over the counter at a bank. The bid-ask spread is the main source of income for market makers. The market-making behavior of market makers does not entirely depend on their own interests, nor is it unlimitedly irrational, but comes from the mutual constraints of market makers and public investors. It is in this mutual interaction that all market participants In order to minimize costs and obtain maximum profits, various trade-offs are constantly made during the constraints to realize their respective interests, and the market therefore operates on a rational track. The risk management of market makers refers to the internal risk control of market makers in the process of market making transactions, which mainly includes inventory risks and information asymmetry risks. Companies listed on the GEM market are generally relatively small and have relatively high risks, which will greatly affect the enthusiasm of investors and securities companies to participate. Especially in a downturn in the market, investors are more likely to lose confidence. There may be an investment boom in the early stages of GEM establishment, but this does not guarantee that the market will not experience a downturn in the future. If there are market makers and they bear the funds required for market making, they can handle any buying and selling at any time and activate the market. Buyers and sellers do not have to wait for the other party to appear. As long as the market maker comes forward and assumes the responsibility of the other party, the transaction can proceed. Therefore, market makers ensure uninterrupted trading activity in the market, even when the market is at a low point. Market makers can maintain market liquidity, improve stock liquidity, and enhance the market's attractiveness to investors and securities companies; maintain price effectiveness and improve investors' trading efficiency.