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Biotech / Medical : ACMI - Accumed Inc. -- Ignore unavailable to you. Want to Upgrade?

To: aatkinson who wrote (488)	11/10/1997 2:29:00 PM
From: Cisco	Read Replies (1) \| Respond to of 1894

I believe that the point Frank and I are tring to make is not there aren't 111,700 shares traded, but that on average only about 41% of the trades represent trades between investors. techstocks.com For example lets say that investor A decides to buy a share of ACMI from his broker. Now your broker buys you the share from a marketmaker's inventory which has been marked up. This counts as 1 trade. (Investor A was the buyer and the marketmaker was the seller.) Now the marketmaker replaces the share he sold you with a share he buys from investor B. This counts as 1 trade. (The marketmaker was the buyer and investor B is the seller.) In this example 2 shares have been traded but only 1 share was investor-generated. Now lets assume that the marketmakers trade some between themselves or buys and sells some shares from investors for their own benefit. These would also be counted as trades. Therefore when ACMI is shown to have traded 100,000 shares on a given day perhaps only 40,000 shares where actually bought by investors of ACMI, the other 60,000 shares may reflect trading between marketmakers (Churn). This is different from the NYSE where your broker for a commission matches the share investor A wants to buy directly with a share that investor B wants to sell. This represent only 1 trade since no marketmaker inserted themselves between the buyer and the seller. If this not correct will someone explain to me what parts I don't understand. I am still learning! Run this past your broker friends and see what they say. Consider what Steve Goldman said on his thread. He is an attorney and head trader at Yammer & Co., Inc. techstocks.com Cisco