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Technology Stocks : Dell Technologies Inc.
DELL 146.68-1.6%3:59 PM EST

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To: Voltaire who wrote (83536)12/3/1998 3:28:00 PM
From: BGR  Read Replies (1) of 176387
 
Voltaire,

Let's formalize CTC's challenge by assuming a simple model with two groups, all MMs in collusion (MM) and everybody else (EE) where the EE group doesn't make any buying or selling decisions based solely on market manipulation by the MM group. I know that this is untrue in real life, but I will come to that later. In that scenario, please explain how the MM group can make money by manipulating equity prices. My contention is that one particular MM may profit at the expense of another, but the total profit is exactly zero for the entire group.

I acknowledge that in reality the EE group panics and the MM group profits from that. But that is based solely on a weakness of the former based on perceived - and not material - strength on part of the later. IMHO, posts like yours only serve to spread this perception, even if you have the best intentions.

-Apratim.
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