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Non-Tech : Bid /Ask Spreads - Market Manipulation

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To: Gene Cullen who wrote (115)10/18/1996 2:16:00 PM
From: NoName   of 308
 
I dont' care how or where the specialist get the order flow. All the specialist needs to know is how many people are buying or selling and how many shares the specialist has in their account. If they have a massive accumulation of shares (which they bought at the lows) they will raise the price regardless of order to buy or sell, simply by raising the stock price and publicizing the rise the specialist can get the gullible public to buy and consequently unloading their shares for a profit. The regulations of the SEC and NYSE on the specialist are so loose and full of loop-holes, its a joke. The common misconception is that the specialist loses money during bear markets and corrections because they have to buy all the shares that are being sold. This is completly false because first of all they are dropping the prices themselves and are glad to buy the shares at discount prices and when they have accumulated enough they will start to raise the price and the market in general.
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