StarTronix (STNX) Great Opportunity Message Board

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Microcap & Penny Stocks : StarTronix (STNX) Great Opportunity

STNX 0.0001000

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Feb 27 3:00 PM EST

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To: lan nguyen who wrote (2503)	12/4/1996 2:24:00 PM
From: PAUL ROBERTSON	of 6629

All the answers you provided are wrong Crandall. MM=market maker. They are employees of brokerage and specialist houses. Their responsibillities include the maintenance of orderly markets,eg. bid,offer and size when no other player or players are around.They normally try to stay small in the number of shares which they carry, preferring to trade the bid-offer difference.They as a rule,that is 95% of the time,trade with the natural ebb and flow of the markets.Occasionally they get caught on the wrong side of the market as every one does and try to hold back or hold up the price.This more often than not works to their disadvantage. They cannot control the price of STNX for very long should they try as this eats up company capital which is against the overall purpose of any firm which deals in market making or specialist activities. Market makers in Canada work as a pack of usually five,each one being responsible for a trading day of the week in a particular stock or option. It is the equivalent of being a specialist for a day allowing them to offset poor positions on days off.Specialists,on the other hand,in Canada are given complete responsibility for a stock,they are the market maker every day whether they want to be or not.The NY stock exchange works on the specialist system.I do not know if there is more than one specialist asigned to one stock as it would be almost impossible for one individual to handle the order flow of say IBM.I think that the IBM specialist acts almost like a traffic cop,dirrecting order flow to the different players on the floor. Paul P.S. I was a specialist and MM on the floor in Montreal.It is normally much more fun to move back and forth between stocks and their formations than to be tied to any one individual stock.The best MM and specialists usually do their technical homework and try to keep a base postion on whatever way the stock is headed.It is very difficult to trade for nickles and dimes off the floors or outside of trading rooms.STNX is definately a stock of which I would like to be a MM.

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