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To: Pete who wrote (433)12/5/1997 10:28:00 AM
From: Ken W  Respond to of 876
 
Pete,

An "MM" is a Market Maker. A Market Maker is the company that is in charge of maintaining an oderly supply and demand market in a stock. MM's have a seat on the floor of the NYSE and NASD. Once oders for buys and sells are satisfied a MM can trade in the stock assigned to him in his own account. In a way it seems a conflict as the MM can move the price of a stock prior to his buying and then sell into new demand. MM's can also buy and sell to each other at the bid and ask, so alot of volume that you see on a stock could very well be stock just moving around inhouse.

Hope this helps.

Ken W



To: Pete who wrote (433)12/5/1997 10:32:00 AM
From: Harold Feller  Read Replies (1) | Respond to of 876
 
Morning Pete;

A MM (Market Maker) is the middle man inbetween the buyers and
sellers of stock. Market Makers provide liquidity by maintaining a
inventory. In a perfect world supply and demand between MM's
drives the price of stock. On the AMEX and NYSE MM's are called
Specialists.