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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (27213)4/4/1998 10:42:00 AM
From: Haywood  Read Replies (1) of 132070
 
Mike,

As one with many years experience in the industry, please comment on the NASDAQ market and marketmakers as compared to the NYSE and specialists. I know this is broad, so I'll narrow it a bit. A couple of articles I've read recently state that a majority of the shares traded on any given day on a NASDAQ stock are between marketmakers and not individual investors - up to forty or fifty per cent. However, on the NYSE, this ratio goes up to about ninety per cent (trades between investors as opposed to between the specialists). And with some of the new trading rules, many of the large brokerage houses are dropping marketmaking in the NASDAQ stocks because of reduced margins.

Is the proposed merge with the AMEX due to some underlying problems with NASDAQ, or is it legitimately good business?

Anyway, your thoughts appreciated.

Haywood
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