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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (30800)	2/18/2002 9:49:52 PM
From: Mike M	Respond to of 99280

aj, don't confuse the MM and the IB roles. The IB brings it to market and has the responsibility to set the stock at a defensible price. The IB's then supports the stock for a period. MM's choose to make a market on stocks that they believe are worthy of making a market. If the market maker is convinced that a stock is going to drop he will initiate a short position while the stock is being pumped and close (purchase) the short as the stock drops. Making an orderly market doesn't mean that the MM will fall on a grenade for anybody. MM's haven't got a philanthropic bone in their bodies...