Seeing Double and Counting:
Subject: Double Counting at Nasdaq
Date: Fri, 26 Sep 1997 10:17:39 -0400
From: "Hashimoto, Tomoko" <HashimoT@nasd.com>
To: "'emory@sprintmail.com'" <emory@sprintmail.com>
Hi, Emory
The message below came from Bob:
The broker is incorrect. Only when the market maker acts as an "agent", that is, when he has both the buyer and seller togther at the same time at the same price with no risk to himself, will a market maker report the trade in question once for 100 shares. Again, refer back to our original e-mail, this happens much more frequently on the NYSE than in Nasdaq, thus the view of "double counting". Nasdaq Webmaster
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From: Emory Alexander[SMTP:emory@sprintmail.com]
Sent: Thursday, September 25, 1997 12:59 PM
To: Hashimoto, Tomoko
Subject: Double Counting
Sorry if I'm beating this thing to death, but it's still not resolved in my mind. If you'd rather I carried on with Mr. Bannon in investor relations please let me know (If so does he have an e-mail address?).
I told a friend about our exchange of e-mail. He talked to his broker at Everen Securities and got a little different story. His broker claims to have checked this out within Everen and got this version.
If a market maker buys 100 shares of stock from an individual and, ON THE SAME DAY, sells those 100 shares to another individual; there's only 100 shares reported. Not 200.
No wonder I'm confused!! :-)
Thanks Emory Alexander
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Hopefully that settles it. Still would like to know what percentage is double counted but this is only 1997... Maybe by the year 2010 NASDAQ will have the answer. |
