Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL) -- Ignore unavailable to you. Want to Upgrade?

To: Sly_ who wrote (25013)	1/13/1998 2:32:00 PM
From: Pat Garaffa	Respond to of 41046

Why does everyone assume the MMs go away once you hit Nasdaq small cap or NMS? I may be wrong, but I thought the MMs were prevelant in those markets as well (although under much tighter scrutiny). I don't think you are truly rid of these clowns until you buy and sell in an auction type market such as the AMEX or NYSE. I may be wrong?? Comments?? - Pat

To: Sly_ who wrote (25013)	1/13/1998 2:33:00 PM
From: Secret_Agent_Man	Read Replies (1) \| Respond to of 41046

Pat, yes they are in the NASDAQ too so we will never be rid of our nemesis. However, we will have a more orderly market. I love the way the MM's Play this game weeding OUT all the short timers. Soon these moves up won't be followed by any moves down and those looking for a quick hit will get a HARD miss and we will be off to the races. Todays close~5-9/16 is my guess. where we opened to give us a doji. bg

To: Sly_ who wrote (25013)	1/13/1998 2:36:00 PM
From: Seth L.	Respond to of 41046

MMs are interesting folks. This is what the NASD thinks of the MMs that govern the NASDAQ and how they are supposed to act. Whats your thoughts? "The hallmark of the NASDAQ Stock Market is its network of competing dealers known as Market Makers. NASDAQ market makers include some of the largest and best capitalized securities firms in the world. In all , there are more than 470 Nasdaq market makers located in 38 states, the District of Columbia. and the United Kingdom." "MM openly compete for investor orders by entering prices at which they are willing to buy and sell securities over the international network of Nasdaq trading terminals (GET DVGd, it would save you money). With an average of 11 MMs per Nasdaq security, this competition works to the benefit of investors in the following ways." "First, competition among MMs produces efficient pricing and provides the market with the capacity to absorb large increases in volume--without the trading halts that are common to the exchanges." "Second, independent academic studies have found that Nasdaqs competing dealers provide greater liquidity than that offered by the single specialist system of the exchanges. (Liquidity is generally defined as the dollar volume of trading required to effect a change in the price of a stock. The higher the dollar volume required, the more liquid a stock.)" "Third, multiple mms commit more capital to making markets than exchange specialists." "Fourth, unlike exchange specialists, MM firms frequently issue research reports on the companies in which they make markets. This activity greatly increases the visibility of a stock among investors. "Finally, most Market making firms have retail departments that merchandise securities in which they make markets. Exchange specialists, because they have exclusive franchises, are generally prohibited from handling customer accounts and thus lack this distribution network" Seth