3DFX Message Board - Msg: 5124781

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Technology Stocks : 3DFX

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To: Piranha who wrote (5107)	7/7/1998 10:25:00 PM
From: Kevin M. Reilly	Read Replies (1) of 16960

What you most probably saw was the MM dropping the price on a block seller. If a block to be sold is offered to the MM he will typically try to find a buyer for the block so he can flip it for the spread or he will bid below the market if the seller is motivated or the block is constrained by liquidity. In the second case the MM will then sit on the offer doling out pieces of the block he just bought. It is usually not a good sign for a stock if the MM is forced to piecemeal the stock as seems evident for TDFX. From the time & sales data I have seen it is very rare that a block is flipped. This may indicate a lack of institutional interest. P.S> I do not think stop-limit orders exist for NASDAQ names. Does anyone know for sure?

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