Now multiple that by ten or a hundred on high volume stocks...and you get the idea...
As the market moves up...the MM is obligated to sell shares to someone who wants them...and if they have no inventory, which is often the case, they short them...as the market pushes it higher...they short more and more and more...
Then when the price gets over bought, they again...short it down to a level below their average and then they collect a lot of money!
This is why people are getting the borrow first law instated through Senator Kaufman...
Rock
Scottrade who is claimed to be a fronter for Knight Securities is leaving the penny business not because it is not a money maker, but because their actions have gone too far...
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.