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Gold/Mining/Energy : American International Petroleum Corp
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To: Terry W Weaver who wrote (3952)10/23/1997 3:04:00 PM
From: taxikid  Read Replies (1) of 11888
 
man you better re-think that post terry-
here is the deal-
a market maker {MM} [nazdaq]-
is supposed to
1]attempt to fill/execute orders for their firms customers
2]trade for their "own" accounts
3]make a two sided market
4]make money
the MM has 4 primary ways to trade-
1]act[phone]trades
2]selectnet
3]instinet
4]soes
the market maker has to have inventory to "fill" the orders- and has to buy as well as sell-
so- as the stock falls- he loses money on current inventory and offsets this loss by either selling short-or hi volume on the "spread" in a crash scenario the market maker is more vulnerable than the average investor- who is he going to "sell" to?
especially when stocks fall rapidly like the 30 point dip in IBM in 1987-
so to assume that it is the MM- manipulating- that is just crazy and shows us your lack of knowledge about the market.
the manipulation is in the spread- i would believethat when this stock was 7 the overhead supply in the market makers inventory was sold off and the stock sold short-the market maker arbs his position by filling orders "short" and not needing an uptik- he takes the risk and there can make a ton of money- to offset other losses incurred- regards
taxi
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