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To: GraceZ who wrote (18858)	1/15/2000 11:15:00 PM
From: ahhaha	Respond to of 29970

It just so happens that guaranteeing a price is illegal. The reason why it was made illegal is that it invites manipulation that otherwise wouldn't occur. When a price is guaranteed the guarantor may have to make up the difference with funds not available. The only way to get funds may be through selling. This could spiral into an effective extension of margin beyond market maker maintenance limits and precipitate an avalanche of selling. It is within the rules to make verbal assurances that the best price will be obtained including, "I'll do my best to get 40 1/4", but any market maker making a secret statement to a client that a specific price will be met, is in violation. This is true for private market makers and floor traders too. Given the lunacy of the business which has increased exponentially for years I believe the rule abuses are rising, but they're not what the public suspects. The public is losing big time so they're looking for scapegoats. They invent all sorts of schemes which couldn't work and wouldn't work even if they were profitable. The actual abuses occur way away from where they could be seen. The public looks where things can be seen and there's nothing there. The SEC is extremely busy and Tokyo was only the beginning.