Tuesday, September 03, 2019 6:14:34 PM
In theory...let's say the float gets locked up. But someone wants in badly. They put in a market order for 1000 shares. But there are no sellers. The market maker will then put up "fake" or naked shares to sell. He is then in a bad position(short) and will need to make it up in future trades. He could do "nothing", but brokers will not like it if their clients call saying they can't get their orders filled.
But let's say the stock price is .50 and the market maker is already down money for the day. He COULD fill your order at .75 and make back .25 a share at your expense. He would then most likely sell a few shares at .50 and bring the price back down and pocket the difference.
If their truly are NO sellers and buying pressure is great, the PPS goes parabolic.
I hope that made sense.
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