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Strategies & Market Trends : A.I.M Users Group Bulletin Board -- Ignore unavailable to you. Want to Upgrade?

To: aptus who wrote (15509)	4/3/2001 9:34:50 PM
From: sterlingmicro	Respond to of 18928

Mark, True Story!.... I have seen how this works from the inside. A trading firm let's call it Bubba's Stock Brokerage. Bubba's makes markets in many stocks and Bubba's is a well known wire house that has many influential clients world wide. Say that Client "Big Daddy" is holding a serious position (well over $1MM)in a not so obscure but so so trading issue. Big Daddy is tired of his Dollars not going anywhere. Big Daddy calls the broker and fires him. The first mode of operation is the first supervising broker with a Series 24 License will intervene. His job is to keep that stock in the Branch office's book. The trader doesn't want it back in inventory, no sir. To hurry this along.... There nearly always seemed to be new and interesting info being pumped out of research on a stock in Big Daddy's situation. New or young brokers whom had little experience in their own research relied upon this information stream and pitch these issues to prospects, friends, family and cold calls. These buys where nearly always matched with sell tickets at the management level. (Yes, simultainious trading this way is not legal. Prove all this though.) Big Daddy is bailed out. The original broker is basically through at this firm. All the clients that were hung with the small lot market orders were sold at the ask. Disaster for the uninformed. The trader and the accomplice are well compensated. The stock never left the book and the they will both live to spend Big Daddy's Big bucks again. Now, today we have fewer brokers, online trading and a miriad of stock and trading news outlets. Bloomberg, CNNfn, The Street.com and on and on...... Where did the brokers go? Some are now analysts and most still licensed. Smoke and mirrors... and a magic carpet ride. "Where else can you be wrong so many times, be directly responsible for people losing millions of dollars and still reap large rewards (and keep your job)?" This was just one man's opinion. CD