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Non-Tech : Meet Gene, a NASDAQ Market Maker -- Ignore unavailable to you. Want to Upgrade?

To: gene_the_mm who wrote (410)	8/4/2000 12:07:38 AM
From: paper man	Read Replies (1) \| Respond to of 1426

Gene - not quite yet - please answer a part of the question you overlooked - or let me ask again. Can a MM make prints for buy orders that are naked. The stock runs up - can they short it back? Now we have a buy order not truly filled (naked) and we have a sell order short. In this scenario if the company executes a proxy to the shareholders interest - desired vote - how will the MM manuever to deliver shares equivalent to the proxy? The same question applies if in the above scenario - the MM fullfills buy prints going up (not naked) and shorts it going down. In addition, the scenario above could be considered a double short assuming it is legal for them to print buy orders on the way up that are naked. All fo this ofcourse relative to retail buyers. Last of all - if it is illegal to print buy orders going up that are naked (still short) - is it still done? If it is not done - and shorting down is the only problem to face - can downward sells be printed naked? (never shorted0 hence cancels your theory about capital required to maintain a short position. Assume these scenarios for a .50 stock that runs to 2.00 and back to .50 in 45 days. All of this ofcourse maintaining a distinct difference between the terms naked and short - or am I just all wet. Thanks for your interest.. good luck

To: gene_the_mm who wrote (410)	8/4/2000 12:18:52 AM
From: Jim Bishop	Respond to of 1426

Terrific thread, appreciate all your time Gene....learning lots. This IMO, should be tattooed, to the inside of everyone's eyelids, written across their monitors, and chanted every night, as a mantra. " Our first order of business is the PRESERVATION of our own capital, and proper money management strategies of that capital."