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Strategies & Market Trends : The Stock Market Bubble -- Ignore unavailable to you. Want to Upgrade?

To: RockyBalboa who wrote (3070)	2/26/2000 3:07:00 AM
From: Michael Collings	Read Replies (1) \| Respond to of 3339

InfoStream: As a condition of being a specialist, he must make a market. That does not mean that a stock will not drop precipitously. 100 share bid is still a market and if you put in a market order he must fill that order. If there is a severe order imbalance it is noted and trading is halted until a price is determined that can accommodate a transaction. The difference is that on Nasdaq stocks, no market maker is required to make a market. That means there will be no market unless the market maker makes the market. So a sell order "at the market" does not guarantee that the order will be filled. For that matter, buy "at the market" orders were not filled in the 87 crash on many Nasdaq stocks. Liquidity does not mean a stock falling rapidly in price. Liquidity is that it trades. The performance in Nasdaq stocks during the crash of 87 was infinitely worse than NYSE stocks. The bids were not honored at any price.