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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: The O who wrote (9354)	7/7/1999 1:49:00 PM
From: GraceZ	Read Replies (3) \| Respond to of 28311

buy messages to whom?? When you want to buy a stock the order is sent to a market maker or an ECN (electronic matching system that matches up buyers and sellers) A market maker is sort of like the corner store, they buy the stock from you even if there is no buyer and likewise they sell the stock to you even if there are no sellers (they go "short" to do this) When there are imbalances in cases where there are many more buyers than sellers or sellers than buyers, they move the price accordingly until either buyers or sellers come back in. Sometimes they make huge sums of money betting like this and sometimes they incur losses....big ones, especially with thinly traded stocks. When an institution wants to buy a large amount the market maker that deals with them doesn't want to risk going short to sell them the stock but puts out a signal that they are interested in buying and tries to see if there is any interest on the other side. This way this huge order doesn't move the market. Here's the catch, sometimes the market makers use these big "interest orders" to manipulate the stock up or down....They really want to buy....so they put up an order to sell and this makes the price go down, because everyone with level two sees them selling. After the stock moves down, they go in and clean up the weak hands at the price they want. You don't want these guys shaking you out of your stock! They will do it if you let them.