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starfire

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starfire

Re: rookinvestor post# 1756

Tuesday, 05/03/2005 12:13:22 PM

Tuesday, May 03, 2005 12:13:22 PM

Post# of 29739
It is very simple; oligopoly! Similar to the oil cartel. The MMs all know each other and I believe there is no more than 20 MMs per stock. Depending on their inventory levels some will be more domianant than others. So they just decide and fix a price. Of course if there is heavy shorting the price will drift down.
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