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Non-Tech : Ashton Technology (ASTN)
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To: Randy Elder who wrote (842)5/8/1999 10:51:00 AM
From: mst2000   of 4443
 
I agree with you - that was exactly my initial impression - but remember, the B/D's can presumably turn around and hedge their positions by selling VWAP shares as the day progresses at .02 (as many now do for their retail customers using an imperfect form of VWAP) in smaller blocks than the 5,000 they are required to buy. Ands if the trend is positive, they can inventory the shares. Everything I have heard from the company and in reading notes from others about the subject says that ASTN will be paid, albeit at a discount (0.01 or maybe even 0.0075), by the B/D's. Maybe the deal is that they pay the discounted rate even when they are making a dedicated order for a customer. So, while I agree that intuitively, the company would have to give something up to bring the B/D's in to provide liquidity, apparently it is a discount, not a royalty.

MST
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