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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (20943)	4/16/2000 10:36:00 AM
From: MIKE REDDERT	Read Replies (1) \| Respond to of 29970

There is abstract inventory and MM is exempt from reg T ( to a great extent). I.e. the MM creates an artificial short. It's a book keeping entry. This scenario sounds suspiciously like a consumer who is given a credit card and continually runs up debt, during which time, he writes memos to himself (book keeping entry) that he must make enough money to pay that debt. Obviously, when all is said and done, the MM cannot sell fictional shares, so your statement implies that the the MM is gambling that at some point in the short term, he can balance his book... ie work the order in more favorable circumstances. In todays markets, I wonder how much slack the MM's firm and the MM himself would allow in these instances... my guess is very little, requiring the MM to work the orders as they come in. Certainly the MM won't decimate the supply in one grand buying spree, but within a very short time frame, he will actively work the order to balance his book. Anything less would be a recipe for ruin. The net effect is buying pressure that will be recognized by other traders, thus forcing the net net buying activity of the MM toward the point of sufficient booked supply. Mike