Market makers are financial institutions or individuals that specialize in creating liquidity in a market by standing ready to buy and sell specific securities or commodities. They make markets by maintaining a guaranteed bid and offer price for a particular asset, thus providing assurance to investors that they can enter or exit positions at any time without affecting the value of their holdings. Market makers profit from the spread between the buy and sell prices, which is typically very small in liquid markets. They play an important role in maintaining orderly trading conditions by stepping into transactions when there are no other willing counterparties available.