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Re: rookinvestor post# 1507

Thursday, 05/19/2005 3:00:20 PM

Thursday, May 19, 2005 3:00:20 PM

Post# of 3059
The MMs are not the same on the OTCBB as on a regular exchange. They are free legally to hold sizable short and long positions in a stock, with a loose obligation to keep a market in it going on. That sort of makes them more of a banker (or maybe a loan shark or a PayDay Loan) with more knowledge of company internals than other participants like us. They can keep a price up or keep it down. They're always going to get a cut because they control the bid/ask spread, and they are supposed to make money on the spread, but whether they try to make money by buy-low-sell-high, I dont know.

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