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surfkast

01/23/16 9:31 AM

#39674 RE: surfkast #39673

Why MM's must buy shares @.0001 even when the toxic shares were bought below that benchmark.
(Many investors can't comprehend this concept, but just look for some OTC stocks that have issued billion of shares into the float and still trade.)

Once the market maker has entered a price, he or she is obligated to either buy or sell at least 1,000 securities at that advertised price. Once the market maker has either bought or sold these shares, he or she may then "leave the market" and enter a new bid or ask price to make a profit on the previous trade.



Read more: Electronic Trading: The Role of a Market Maker | Investopedia http://www.investopedia.com/university/electronictrading/trading3.asp#ixzz3y4su2Vcf
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