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Non-Tech : Bid /Ask Spreads - Market Manipulation

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To: Jeff Dryer who wrote ()10/10/1996 3:31:00 PM
From: slipnsip   of 308
 
Everyone wants to have instant execution at a good price...

Lets review the functionality of the market maker. When you call to sell you stock, often depending on the issue, there is no individual out there who is willing to take the other side of your trade. Consequently, the only reason you are able to "sell" or "buy" with instant execution with a market order is that the market maker is obligating his firms capital to take the other side of anyones trade up to the size limit he designates. If the market maker has to risk his capital to provide you the customer with an instant execution/liquidity, doesn't anyone think that they should be compensated for that risk???

No I am not a maket maker, just an interested party.

David Hurbanis
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