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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: Herb Blair who wrote (21465)9/8/2000 11:22:16 AM
From: rli123  Read Replies (1) of 27311
 
Herb -- First a disclaimer -- I'm not an expert trader -- but I have first hand experience that 'large players' can contact a market maker and tell him to accumulate shares of a particular stock as shares come on to the market -- and then, after a certain period of time (maybe a week) or after a certain number of shares are accumulated by the market maker, the shares are 'sold' by the market maker to the 'large player' at an agreed-upon markup -- say an eighth of a point over the market maker's cost (or maybe at the prevailing price at the time of the sale). In this way, the 'large player' can acquire sizable amounts of stock without moving the price up. My guess is that this is standard practice -- done all the time, particularly with thinly traded issues. Maybe this explains the 200,000 shares traded (from the market maker to the 'large player') today.
rli
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