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CFA Level 2
Equity Investments

Role of Market Participants in Equity Markets

Hard Equity Market Structure Market Participants

In the context of equity market structure, it is important to understand the roles of various market participants. Among these participants, certain groups have significant impacts on pricing and liquidity in the market. Consider a situation where a new technology firm is publically traded, and its stock is highly volatile after an initial public offering (IPO). Which market participant is primarily responsible for maintaining orderly trading and providing necessary liquidity in such scenarios?

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