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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 178.29-1.6%Dec 12 9:30 AM EST

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To: Ruffian who wrote (57288)12/28/1999 10:17:00 PM
From: J Langholtz  Read Replies (2) of 152472
 
There is a lot of discussion about MMs driving the price lower so they can pick up additional shares at a better price. We are assuming that there is significant demand for the stock and that the MMs are picking up the shares to meet future demand and to cover their short positions.

If there is substantial demand you would expect that when the MMs stop bidding ( with the intention of driving the price down) other astute investors would simply bid on the shares that are offered at price x. If there is substantial latent demand, how is it possible to drive prices down without shorting additional shares? - I hope someone can explain this apparent inconsistency. Thanks
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