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Re: LIKEAFOX post# 124540

Thursday, 04/23/2009 12:53:14 PM

Thursday, April 23, 2009 12:53:14 PM

Post# of 192592
"As long as the MM's continue to sell at the bid we will only go down or trade sideways."

You really think the Market Makers are sending the stock price down?

FYI.

You mean the broker/dealers are sending this stock price down because they are the ones holding the inventory for XYZ company or the person XXX. The company or the person will tell there broker/dealer to dump the shares, usually insiders are involved with broker/dealers.

You need to read on how Market Makers work. For example

If you are holding shares, lets say 1000, and a buyer at .015 for 500 and another buyer at .014 for 500 and a seller at .016 1000.

The Market Marker is the middleman.

If you sell your shares, the Market Maker will give the buyer 500 at .015 and the other buyer at .014 for a 500 shares.

The ticker price will decrease to .014 with a 1000 volume.

Then the Market Maker will change the bid and ask price again because there is another buyer at .013 and a seller at .016. Then he will work something out with the buyer and seller so the spread is closer together, or a seller will come in at .014 because people are buying at that price.



MM 101.

No reply please.

hope this helps


Volume:
Day Range:
Bid:
Ask:
Last Trade Time:
Total Trades:
  • 1D
  • 1M
  • 3M
  • 6M
  • 1Y
  • 5Y