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Re: NMC post# 77636

Wednesday, 10/20/2010 3:19:57 PM

Wednesday, October 20, 2010 3:19:57 PM

Post# of 111214
You are correct:

http://www.sec.gov/spotlight/keyregshoissues.htm

Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board