The Market Maker - What impact does a market maker have on stock turnover?

Abstract

This study will measure the effect a market maker has on stock turnover. Our results have been run through a regression analysis. The results from the regression analysis were statistically significant from zero, but the results was not satisfying thus the increase was fairly small. Due this problem, we compared the relationship between the stock turnover and index turnover before and after the market maker and found that the market maker has a statistically significant effect on stock turnover with 6,2%.