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Strategies & Market Trends : The DD Maven
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From: Hard_to_catch212/8/2005 3:48:49 PM
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Does anyone here know how the (MM) market makers work?

What I'm asking is this: Do they have someone sitting at a monitor watching a group of stocks and then decide the ask and bid price, or is this done through a computer program that figures the pressure of the stock from all the buy and sell orders it gets.

I know there is a lot of conversation on the MM causing stock prices to drop "oh so fast" so I would like to get a better understanding on how they operate.

I know they buy stocks but then why are they not obligated to sell if we "the public" are asking to buy?

I was under the impression their money was made on the spread. Lately I am wondering if they are not keeping some stocks until it goes up before filling buy orders.

If that is the case then isn't that insider trading?

Any input is appreciated. I put this question here since it will help all of us to be better investors, once we know how they operate.

Thanks.

RPL.
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