VLVT (was CSMA) Message Board

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Microcap & Penny Stocks : VLVT (was CSMA)

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To: David Smith who wrote (2442)	12/2/1997 9:08:00 PM
From: tradesman	Read Replies (2) of 11708

<<<<<Level II showed the 4 MM on the ask again, doing the same thing that they did a couple of weeks ago. Some are selling, to be sure but these MMs are providing strong downward pressure. They will continue to short for now so the stock seems to be headed lower. Not good for those with weak stomachs.>>>>>>>>>> The function of a market maker is to maintanin liquidity in the stock. He does so by lowering the price when faced with sellers and raising the price when there are buyers and in the process, he makes money. Sometimes known as legalized theft. I guess I don't understand how market makers work their magic. Could you explain why a market maker would "short" a stock? Are they trying to drive the price down so they will have cheap shares to sell when the buyers come in? I just don't understand the way this works.

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