![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Friday, October 27, 2006 3:44:13 PM
What you are referring to is "Month End" for Market Makers and Funds. Most (about 75%) Market Makers and Funds use the "last settlement day of the month" to "Mark to the Market" their long and short positions. If I am a Market Maker for a brokerage firm I am primarily being compensated by my "trading profits or losses". For example if I end the month short 300,000 share of a stock that I shorted at say a dime and it closes at .07 on my closing day, I will show a $9,000 profit on my books. By Brokerage firm will probably give me 25% of that unclosed position as a bonus. But if the stock closes at say $.13, then my firm will dock me against my other profits at least 50% and maybe more of the amount I am underwater. This is pretty much how it works with MM's. But there is a similar effect, but not nearly as much involved with Hedge fund Managers.
So you can see why there might be an incentive for Fund Managers and MM's to play Month End Games.
BTW, the 25% or so that don't use last Settlement Day, Elect to use Last Trading Day of the Month. But once a firm makes an election on which day to use, they have to stick with it every month. So it is possible to get a smaller "Month End" effect on the last day of the month.
So for that reason,
Recent KRFG News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 02/20/2024 03:37:30 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 02/14/2024 12:58:23 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 02/09/2024 06:51:38 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/04/2024 01:09:42 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/20/2023 04:17:53 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 11/20/2023 03:13:58 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 11/15/2023 12:23:44 PM
- Form 10-K/A - Annual report [Section 13 and 15(d), not S-K Item 405]: [Amend] • Edgar (US Regulatory) • 10/16/2023 01:42:18 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/14/2023 03:48:58 PM
- Form 10-K - Annual report [Section 13 and 15(d), not S-K Item 405] • Edgar (US Regulatory) • 07/14/2023 06:52:57 PM
Glidelogic Corp. Becomes TikTok Shop Partner, Opening a New Chapter in E-commerce Services • GDLG • Jul 5, 2024 7:09 AM
Freedom Holdings Corporate Update; Announces Management Has Signed Letter of Intent • FHLD • Jul 3, 2024 9:00 AM
EWRC's 21 Moves Gaming Studios Moves to SONY Pictures Studios and Green Lights Development of a Third Upcoming Game • EWRC • Jul 2, 2024 8:00 AM
BNCM and DELEX Healthcare Group Announce Strategic Merger to Drive Expansion and Growth • BNCM • Jul 2, 2024 7:19 AM
NUBURU Announces Upcoming TV Interview Featuring CEO Brian Knaley on Fox Business, Bloomberg TV, and Newsmax TV as Sponsored Programming • BURU • Jul 1, 2024 1:57 PM
Mass Megawatts Announces $220,500 Debt Cancellation Agreement to Improve Financing and Sales of a New Product to be Announced on July 11 • MMMW • Jun 28, 2024 7:30 AM