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brute_force

10/17/07 11:07 AM

#270931 RE: needdiamonds #270926

needdiamonds, with all respect, my friend. You don't understand. Let me explain. The stock you mention is used in trade-out agreements. That means a specialist, like FANC, a MM, or MM's, are provided an inventory of stock to move the market with. Olsen disclosed trade-out agreements with brokers in QBID "runs" of the past. The MM's will rip upticks and then dump their clients stock on the upticks they ripped. They MM gets a kick-back from the sale to cover the cost of the uptick + his kick-back (profit).

Hope this helps.


http://web.archive.org/web/20010828180551/www.qbid.net/qbidmessages/August_24_2001_Chatroom_Dialogue...

Frankie: We've negotiated some trade outs with brokerage houses, but don't read too much into this....If there is a relationship between our company, I will tell you....This is just an agreement with a broker

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Specialist

a RR who acts as the market maker to facilitate the trading of a given stock. The specialist holds an inventory of the stock, posts the bid and ask prices, manages limit orders and executes trades. They are also responsible to trade out of their own inventory to manage large movements. If there is a large shift in demand on the buy or sell side, the specialist will step in and sell out of their inventory to meet the demand until the gap has been narrowed.