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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: fiberman who wrote (22190)	11/9/1997 5:14:00 PM
From: Glenn D. Rudolph	Respond to of 61433

Glenn, when a MM shows 20X40 size, does that mean that they have 2000 shares for sale, and want to buy 4000 shares for real customers? In another word, are they matching buys and sells with customers, or do they buy for their inventory & unload later on to customers, and vice versa. Thanks in advance for your answer. Fiberman, If you are looking at real time quotes with a bid size of 20 and an ask size of 40 on the NASDAQ, it is likely you are seeing the a bid size from one MM and an ask size from another MM. The highest dollar bid is shown and the lowest dollar ask is shown. If you could see the sizes at a further spread as Gary can with level II, you would see the next sizes as you move further away each 16th. Finally, the sizes shown by the MM appear to be representative of the MM's sizes rather than actual. This is not so on the NYSE where you have a Specialist. In is not unlikely to be watching a NASDAQ stock live seeing 20X40 and a 25K trade go through. Where did that come from? MMs do buy or sell from inventory based on their perception of the market movement. They are given this leeway by the brokerage house that employs them. A good MM can make a spread of at lease 1/4 point per share. Glenn