[sesuximo]

Why do high spreads mean more money for middlemen?

[Arnt]

When you buy stock, you generally by it from a "market maker", which is a middleman. When you sell, you sell to a market maker. Their business is to let you buy and sell when you want instead of waiting for a buyer/seller to show up. The spread is their profit source.

[sesuximo]

Wouldn’t the price movement overwhelm the spread if you sell more than a few days after you buy? I guess if spreads were huge it would matter more