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Re: Deadheded post# 13584

Tuesday, 09/09/2008 2:20:16 AM

Tuesday, September 09, 2008 2:20:16 AM

Post# of 154391
That's nonsense...

NSS serves several purposes, but a few of the major ones are:

1) Maintain liquidity -- Sometimes this is an issue and they NSS as to keep it trading. Is this Ok? Eh, depends who you talk to. It seems the law is confused on this one.

2) Clean up a previous short position -- NSS can use used to box the stock and allow a short to cover on good terms. Legal? No. Common, yes!

3) Blind NSS -- This is the case where a failure to deliver may crush a MM or represented party. Thus the MMs issue "air shares" as to crush the buyers in the hopes of recovering enough shares as to deliver. Usually this happens on SHO listed stocks.

4) More...

The MMs don't care about the underlying company -- all they care about is the revenue generated from making the market. They are here to MAKE MONEY since it's their business to make money while offering a market. Thus they have no personal interest as to ensure the demise of a company. (Unless an MM has a personal vendetta.) Even a blind NSS'er doesn't care -- they are just trying to deliver.

So, if you see a channel that's not dumping and the SHO List has the stock listed for MONTHS, that's an NSS at work. You see a lot of this w/ 000 (and some 00) stocks. Some claim shortsqueeze.com keeps good data, but I doubt it. Nonetheless they seem to be on the ball for NSS since they do monitor SHO pretty closely.



Volume:
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