Donaldm -
Yes, there are no Market Makers AS SUCH on the NYSE.
There ARE 'specialists' on the NYSE, though... don't forget that. They are not just brokers, but members of the exchange who specialize in a particular stock (like EMC), and as such, may add/delete shares from their OWN holdings in the stock, as well as execute pure trades with other brokers.
So, a MARKET MAKER and a SPECIALIST, in that sense, are really not all that different. Just in location... specialists are on the floor, market makers in a back room somewhere.
What Dennis is saying can still be applicable to specialists.
(I'm not an expert in this, just know what I learned from "How to Buy Stocks", a classic by Engel and Boyd.)
Loren |
