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Re: WolfWayne post# 29386

Tuesday, 11/03/2015 11:40:40 AM

Tuesday, November 03, 2015 11:40:40 AM

Post# of 459597

Theoretically, it's possible at some point that MMs run out shares and lose control, right? What might that mean? A halt? Missling's execution of some of the LP shares to ensure supply meets demand? What says the board?


Correct me if I am wrong, but MM's do not directly own shares. I am guessing the only time they have a say in the price is when a "market" order comes in. At that point a incoming "market" buy order is 1) matched to other "market" sell (asking) orders, or 2) an awaiting limit sell (asking) order. That gets recorded as the last traded price of the stock. It is at the discretion of the MM on how they want to parlay their temporary "ownership" of the stock. Absent of market orders, the price will not move.

Not claiming to know this as fact, but that is my educated guess on how this works. Appreciate any corrections.

IMHO
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