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Technology Stocks : e.Digital Corporation(EDIG) - Embedded Digital Technology
EDIG 0.00010000.0%Mar 20 5:00 PM EST

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To: J.N.N. who wrote (11302)2/27/2000 1:55:00 PM
From: Jon Tara  Read Replies (1) of 18366
 
Another paranoid theory heard:

"many more shares bought than sold which would reflect dwindling mm inventory."

MMs actually try their darndest to NOT carry inventory from day-to-day.

MMs are the original day-traders. They are not stock speculators - they do not care or have an opinion on the direction of the price. They are in the business of making a market in stocks, and make their money primarly off the spread. While they may carry a net long or short position during some part of the day, they want to be "flat" at the close. Carrying a position over night dramatically increases their capital requirement and exposes them to unwanted market risk.

It must be tough to make money when your concept of what goes on at the other end of the trade is so wrong. I must assume that most of those who complain about the evil market-makers are losing money. If you were making money, why on earth would you complain about the MMs?
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