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To: Arthur Tang who wrote (1124)	2/6/2000 8:47:00 AM
From: Arthur Tang	Respond to of 1471

Perspectives of market making? Stock market works in mysterious ways. After underwriting, all the stock shares are spoken for. How does supply and demand work? When market maker moves the stock, investors buy. When market maker pulls back the investors sold back to market maker. The market is thus kaotic. If market maker establishes stock pool and cash pool out of a group of his customers. These pools maintain the market. So, the stock is likely to move from small investors to daytraders then to institutional investors. The stock prices then have nice moves to the ultimate value determined by earnings, when big money recognizes the value and rewards it properly. Profit taking then is the motivation to move stock. In the feed chain, it take time to move the stock from one group of investors to another. Same shares move all the way up to institutional hands. Therefore, the market maker sometimes has to do business management consulting to the company to enhance the stockholders' value to sell to the institutional investors. We always advise the company to talk to the lead market maker to see what can be done to attract(or to promote to get) more investors. On the other hand, proactive stockholders can also make market maker's job easier, to put all the actions together. We have demonstrated time and again it can be done by stockholders.