On4 Communications Inc (ONCI)

[shotsky]

Of course mm's short - they don't actually buy and sell shares, they borrow and facilitate trades, then take a cut on the deal when they cover. They cover at the end of the day, almost always. It is a highly regulated, and highly computerized system, where the fastest systems make the most money. You don't think mm's actually purchase shares, then sell them to you, do you? That would make them day traders, and their profit would ALL be capital gains.
It is worthwhile finding out exactly how mm's work. The whole trading system, from you placing an order until it is processed and settled is quite interesting, and far more complex than most people imagine. But the ONE thing that does NOT happen is - they don't buy shares and then sell them at a profit. That is strictly illegal. They don't play games with share prices either. They fill orders IF they can find the shares to do so.