Rock Ridge Resources, Inc. (RRRI)

[Irgitupp]

What?

Market Maker:
a quote from investorpedia.com:
A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security in order to facilitate trading in that security. Each market maker competes for customer order flow by displaying buy and sell quotations for a guaranteed number of shares.
Once an order is received, the market maker immediately sells from its own inventory or seeks an offsetting order. This process takes place in mere seconds.

Me:
Every Company traded on the Market is required to have at least one Market Maker who deals in the shares of the Company. Who makes Market for the shares. Wether is is electronic or not. He is required to keep inventory of his own! That means of course when the Market Maker is accumulating shares he is adding back to it's own inventory to be able to keep the spread. and sell us you/me or others higher again on the ask. So when you see shares sold it doesn't mean that you see the public selling shares! He can be adding to his inventory by buying oour shares or it could be from the offsetting order. The spread represents the market maker's profit on each trade.

When a Company has very few MMers it is easier to make market (and demand) for the shares! Why? Because more MM' means more battle of the shares. One has to cover for short another has to do something else etc. That's is one of the reason you see much Higher and higher price on the shares in a Company on the OB or PINK-OB. Not necessary because the price is as low as a small fraction of a dollar. It is often because of few MM's in that particular Company. The MM is the only one making the spread, or very few. MM who controls the spread and makes the demand we want.


Let's see:
I want to buy shares in some Company then the Market Maker sell shares from his inventory usually on the ask price or sometimes a fraction between, a bit lower than the ask. Sometimes it works (but better with a Stock with a higher price of course) to set your limit buy between the bid and ask and you get filled. It depends were the shares in the Company is heading at the moment (up or down). That's how you see odd numbers like 12333333 shares or something like that. Of course when I buy shares there wouldn't be you selling me (i.e. like you mention share/for/share.

I want to sell shares. The MM buyes the shares back usually on the bid (not you or another public figure), adding back to his inventory! But I wouldn't be the only one willing to sell. Perhaps another MM from his inventory. Or the offsetting order mentioned.

So when the demand for shares is rising the market price gets higher and the Company get'ts more and we too. But the MM gets to hold the spread.

So the simple answer is this: to be able to make Market for the shares. To be able to push price higher when the demand requires. Of course he wants to have large inventory when the demands are much more for the shares. Let se for example the large sum of shares trated in QMNM for the last days. Somtimes over 200 million shares each day. Ho would be possible if I (and many other peoples) holds my shares for a long time and do not want to sell? The MM inventory will at last be too few shares to sell. So of course the MM want to add back to his inventory.

Lets see:
The Company on the Pink has about 700.000.000 shares on the Market to Trade. How would it be possible if the MM doesn't keep inventory when the shares are bought in millon each day?

And he wants be able to control the spread to make money. And he is not to required to sell you exactly those shares I want to sell and you want to buy.