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Re: hampstead post# 3676

Wednesday, 04/05/2017 1:45:27 PM

Wednesday, April 05, 2017 1:45:27 PM

Post# of 5557
Does not make sense to me. See if I still understand this. If there is no trading at all then MM's do not make any money. If a stocks daily buys and sells are approximately equal, then MM's make the spread between bid and ask and the more shares traded the more money they make, basically risk free. I would think this is still how/where most MM's would prefer to make the majority of their revenue. MM risk is if there is too many trades in only one direction (buying or selling) which causes them to have to go long or short. If trades continue to be unbalanced in only one direction, then MM can start losing money.
RHCO is so thinly traded, I would think they would rather just see more shares traded, but guess it is also easy to look at history of the stock and see that any momentum seems to run out pretty fast.