Every so often one comes across a person who, well, let's be polite... a person who says the darndest things. The guy who wrote this claims he has lost money on only two stocks in 10 years. He was trying to prove that even though his stock was tanking (so far from .60 down to .15) that it was still safe to buy it because the market makers were not afraid to buy it:
But let me ask you this, (And remember you are a Market Maker), if the stock is such a dud, and it is doomed to go to zero, WHY WOULD YOU BUY IT????(as a market maker that is)
post.messages.yahoo.com@m2.yahoo.com
Psst...Bruce, ever notice the bid and ask are not the same? You know why? So the market makers can buy it at one price and sell it for a higher one. Pretty slick, yes?! Imagine this scenario: buy at .15 sell at .18, buy at .10 sell at .12, buy at .05 sell at .07, buy at .001 sell at .005. Right down to 0 and making money the whole time. But, don't worry, with people like you around to keep buying whatever the MMs take in, there's little incentive to go to 0 too fast.
- Jeff
P.S. Sorry, I just had to get that one off my chest. |
