MM'S- A SIMPLE OVERVIEW
If you want to understand in simple terms, how the Market Makers function in BB Stocks, here's the view;
Between the buyer and seller, is a person called a Market Maker, The BID, is the price they'll BUY your stock for ( as cheap as they can ); the ASK is the price they'll SELL that same stock for ( as much as they can get ) .....as long as they have stock in inventory, or are able to BUY your stock at a certain price, or in some cases sell PHANTOM SHARES, figuring they will be able to "COVER" at a later date, the price WILL NOT RISE, until the demand for the stock, overcomes, they're ability to BUY a the lower prices. So WATCH the BID, to see where the MM's are going, and in turn the stock price.... |