Are the institutional traders (smart money) also the market makers?


When a stock is transacted I believe it goes like this right?

Buyer <---> Market Maker <---> Seller

The Market Maker sells from their inventory to the buyer. Then the Market Maker will buy from the Seller.

When institutional traders buy and sell stocks, are they the Market Makers or are they the buy (or seller) who also has to go through a Market Maker just like a retail trader does?


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