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Non-Tech : IMPX Stock Price Predictions: How Much? When? Why?
IMPX 6.210+13.3%Oct 22 3:59 PM EST

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To: BILL CROSBY who wrote (173)6/6/1996 12:26:00 PM
From: Brian Haulman   of 209
 
My explanation was the case of how some institutions might be
accumulating stock and the stock price was heading down (please
read the post I was responding to). The person asked the question
"how can large buyers be accumulating and the price be going down.
Quite simply, the the case of a limit buy order:

If an institutional buyer wants to buy 10,000 shares at a limit of 9 1/2,
and the stock is at 10 1/2, the MM will have to wait untill enough
smaller sellers come along that the price drops to B9 1/4 A9 1/2 to
fill the order from his inventory. Most of those sellers will have sold at
higher prices than the 9 1/2 the institution paid. The MM will always
make the spread on each sale. Thats the money they bring in. From
that, they pay expenses, etc.

I think you thought I was explaining market orders. Sure a market order
for 10,000 shares would be filled at higher prices because the MM is
free to raise the bid-ask to attract sellers.
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