My good friend Todd in the TS Forum (via Midas Oracle).
Market makers are not a substitute for liquidity. For instance, compare two $40 bil healthcare companies: BAX (Baxter Intl, NYSE w/ market maker) and GILD (Gilead Sciences, Nasdaq w/o market marker). GILD trades about $350 mil per day on average, vs. $190 mil for BAX.
Demand is the real key, some ingredients being:
trust
transparency
technology
transaction costs
Cost of carry is also an issue.
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