When someone buys a 400K share block, and only 5,000 are presented for sale but the ask size never changes even though the trade goes through, I would say that's an unfair representation. 5,000 is not the true size available.
Further, on the "more reputable" NASD, if you trade enough you'll find that orders over 10,000 shares do not need to be represented as such. I have often placed orders of this size only to watch the MM present it on L2 as 100 or 500 shares.
Specialists on the NYSE, AME, PHX, etc. are also notorious for misrepresenting sizes in order to motivate trading one way or the other.
It's dangerous to say it's common knowledge, since it's not fair, nor broadly published. However, if you speak to the right people, or you trade enough, you'll find it to be very common.
Bottom line is it sucks, because to substantially fogs the transparency being sold to the public. |
