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Strategies & Market Trends : Analysis Class for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (712)	2/21/1998 8:21:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

Market making revisited? There are two types of market makers. For most investors, you can visit Nasdaq trading data web site to get their names for your stock. By looking at level II quotes, you can tell who wants to do business and at what bid and ask quotations. By plotting their bid and ask prices, you can tell whether they want other people's business by competitive pricing or only to satisfy their own captive market(two types). Consistantly higher quotations may mean their own inventory. Consistantly competitive will mean they want all the business; that they do not have a market of their own. Too many of these market makers will spoil the stock price. Stay away from that kind of stock, that all the market makers do not own a single share of the company stock. CCUR is one of the stock that has too many market makers who do not own CCUR stock. Lead market maker is too small to control the price of the stock for a high valuation.