InvestorsHub Logo

snoof77

01/18/21 2:00 PM

#24208 RE: Willy #24206

Willy, the market makers are not just in business to make a market for stocks. They are in business to make money. The spread between ask and bid allows them to achieve that objective and is the most popular way. Creating liquidity in the markets creates risk for them. In the end they will do what is best for themselves and the ask/bids of a stock will be based on that.

The computer algorithmic systems that they use are only as secure and efficient as those that programmed, operate, monitor, and adjust based on market conditions and their strategies. Therefore, short selling can be done by the market makers as programmed into their systems to achieve their strategy. Short covering can also be programmed in as well as evident by spikes in a company's stock price for no particular reason.

Bottom line is any system can be manipulated. Market Makers can lose alot of money if they don't monitor and control the perimeters of the algorithmic systems they utilize.

In my opinion, CAVR has a significant short component attached to their stock price. It is also in my opinion why some individuals show up on public message boards posting as if they don't want the company to succeed.