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

To: Investor2 who wrote (624)	8/18/2000 10:22:24 PM
From: LPS5	Respond to of 1426

Investor2, Brokers are obligated to disclose if they make a market in, have a large stake in, do investment banking for, or generally have some interest in the company underlying an equity, debt, or other type of security which their analysts or brokers recommend. If the disclosure states that they make a market in the issue, then yes - they're dealers like Gene. If it says that they have "significant ownership" in an issue (or something like that), it means essentially that they have a 10% or greater stake on a principal basis. And as for whether or not there is a conflict of interest...well, that's the whole point of the disclosure; to make it fully known that they are - or may be - involved in the issue on several levels. It's up to you to decide, with that information, whether or not to take their advice. LPS5

To: Investor2 who wrote (624)	8/18/2000 11:52:02 PM
From: gene_the_mm	Respond to of 1426

I2... 1. Yes, there is an MM who trades in the same manner that I do who makes a market in that stock. 2. Actually it is not a conflict of interest in that they have more control over the executions you receive. Also, there is supposed to be a 'chinese wall' that separates the information and INTERESTS between trading and the research/brokerage department. As far as trusting them, are they a 'name brand' brokerage firm? I personally feel unless the analyst making the recommendation has some type of reputation/is well-known that you can find great stocks for yourself by doing your own DD. Janice, Dannobbee, LPS and many others here are OUTSTANDING at teaching people like yourself how to due research on small and large companies and analyze fundamentals. We also have people here that can teach you how to 'eyeball' charts (myself included here) and show you what does and does not look like a good chart formation. I personally love charts because they DO NOT lie. General trends (UP, DOWN or SIDEWAYS) tend to continue -- and there are ways of determining if the general trend has been broken as well. Bottom line -- if you don't have time to do your own research I would trust the recommendations of either the major brokerages or brokerages that you know have a proven track record. Good luck with it and ASK questions on the DD and charting stuff above. You will be surprised at how much some of these people know and can help you. All the best, -- Gene