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Technology Stocks : Ascend Communications (ASND)
ASND 207.04+0.7%Dec 8 3:59 PM EST
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To: Edward J. Edwards, III who wrote (28986)1/1/1998 1:18:00 PM
From: username   of 61433
 
Edward; R: MM controlling the price of ASND;

You have some either incorrect or missing data. Consider the following:

MM are there to facilitate trades. They use traders to execute the actual orders. Traders have limits. (dollar limits), and it's not a good thing to lose money.
You GOTTA PAY for the inventory. With few exceptions, a MM WON"T EVEN TOUCH a stock without an order to hand. It's WAY too dangerous if you get caught on the wrong side of the market. It's not illegal to try and "hold" the price of a stock at a certain level but there is just no way to do that without a VERY big order. Traders just cannot do it.
If you were buying a block, you would expect the same courtesy from your MM. (Incidentally, the majority of big block trades occur outside of market hours I believe. Perhaps someone else can shed some light on this particular aspect of the discussion if anyone cares about it.)
The idea that a MM will "hold" inventory without a buy or sell order is just plain incorrect...and the bigger your imagined "hold" the more incorrect the idea.
Finally, there is a HUGE difference (in the MM's world) between a limit order and a market order. The NASD has recently implemented new rules in this regard.
I see veiled references to this concept of MM "control" every so often on SI, and I believe it is nothing more than missing information. Here is the correct information as I understand it.

best, pete
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