Market makers are financial firms or individuals that facilitate trading in financial markets by providing liquidity. They do this by continuously buying and selling securities, such as stocks or bonds, at publicly quoted prices. By maintaining a balance between supply and demand, market makers help ensure that there are always buyers and sellers available, which makes it easier for investors to trade. These entities play a crucial role in the functioning of markets, as they help reduce price volatility and improve market efficiency. Without market makers, it would be much harder for investors to execute trades quickly, potentially leading to larger price swings and less stable markets.