How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 487.79

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3:59 PM EST

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To: abbigail who wrote (35887)	12/31/1999 5:14:00 PM
From: stephan boileau	Read Replies (2) of 74651

Explanation of Market Makers Market Makers are simply big brokerage firms like Merryl Lynch that basically make a market on a stock. This means that they will sell when people buy and buy when people sell. They do not match order per order but rather intervene when there is order imbalances. In this case because of thin volume, whenever Msft went up because of too many buyers the market maker would sell. The same goes when the price went down. This had the effect of holding stock in neutral while we await new year. It also prevents stock from getting out of hand in case funds want to buy stock and don't want to pay $ 160 now. What does a market marker get from this. The firm earns a profit from it's trades. It buys low and sells high essentially locking in the stock price in a narrow range. It is the ideal world for a market maker. This ideal world however comes to an end when volume picks up again since it would take huge funds to support or stop stock from rising. This week was for market marker profits. Next week is where the real action is. Earnings date confirmed per Msft is January 17, 2000 after the close. Good Luck

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