Aytu BioScience Inc. (AYTU)

[Johnny_C]

Dude, they can but they don't need to. Typically funds borrow shares, MM's can go long and short my friend and settle up at months end. If a MM is selling stock they don't own in their box as the stock is running they just average the short up and then buy it when they retrace

A short position that is losing would be underwater and be negative at mark to the market

A short position in the money would be a positive mark to the market

As far as not holding shares, that is not true. While they work like a bookie and generally want to close out the bet they are allowed to ride out winners up or down. Depends on how much leeway the trader has and how much money he has in his box. A position in one stock can affect how he trades other stocks. Even though various MM's are competitors, they can and do work together. Picture 2 local divorce attorneys, pretending to fight it out in court, but then on Friday you see them together at the local bar having drinks laughing it up on how much money they each made.

Carry On my friend