Replies to post #46459 on Nate's Food Company (NHMD)

[Sheepdog]

You mean market maker.

I don't understand it either. don't have L2 so I can't tell the individual offers. MM's are obligated to make good on their offers, but that is all.

If there is an MM showing an offer of 400K shares at .0012 they HAVE to honor it. I suspect that is not the case and they would have to locate more shares or "loan" them to you....and that costs.

If they have a locate already, they won't charge extra. But they don't have to go out of their way to do that locate for you.

Remember that all long sales with a MM are sold first into the market and then they immediately buy them back. So they are temp "on the hook" for them and they hold themselves to the "riskless transaction" protocol. This is the "sales volume" you see reported in FINRA's daily short volume report and has nothing to do with the oft-hyped short position of the company.