Market makers can and do internalize but they also operate on exchange and where they really get the name market maker, when they are a designated market maker, they are responsible to fill buy and sell sides to complete trades that would otherwise not be filled.
imhere4thestonks t1_iu9tsom wrote
Reply to comment by Extremely-Bad-Idea in Is it just me, or is a a Market Makers' role in Order/Execution/Settlement confusing? Question: The CEO of Webull talked about their Market Maker, saying: "We're able to buy a share without driving up the stock 10% every time?" What does this work with Price Discovery & Supply & Demand? by ringingbells
Market makers can and do internalize but they also operate on exchange and where they really get the name market maker, when they are a designated market maker, they are responsible to fill buy and sell sides to complete trades that would otherwise not be filled.