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Re: A deleted message

Wednesday, 12/05/2012 7:23:54 PM

Wednesday, December 05, 2012 7:23:54 PM

Post# of 1142
I guess you don't understand how Market Makers make the OTC liquid.

I wonder why nobody who owned the 45 million shares is selling?

If nobody is selling does not matter. That keeps the stock price exactly where it is.....or lower.

The only thing that matters is that there are no buyers.

In the absence of liquidity this is how the Market Maker system is set up to keep it liquid....this is basic stuff....

You see, once an order to 'buy' is entered a Market Maker must fill the order....even if they do not have a 'seller' to match the order ( ala no liquidity)... they have to sell them short to fill the order and complete the sale later.

If they can not complete the sale because there 'are no sellers' than the Market Maker's start raising the bid drastically to induce sellers and close the temporary short sale.

Since Market Makers do not typically hold inventory, or short sales, overnight they do this almost immediately after and the L2 starts climbing north.

So even if all the sellers were lining up in droves, as long as there are no buyers the price of this stock stays down where it is.




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