You’re right. The convenient tool is part of their job. In the OTC world MM earns significantly more through a weighted volume method.
MM P/L is in the business to make money on the transaction and are allowed to do so with minimal risk expose. But what they do not do is speculate on company business objective or direction. Earn from the spread orderlow and inbalance of supply at the current time and flatted out a position at the close, usually.
Yes correct it is illegal from a retail standpoint to short to OTC stocks, however, there are loop holes being exploited that makes it difficult to crack down.
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