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Strategies & Market Trends : APMP (formerly APM) -- Ignore unavailable to you. Want to Upgrade?

To: Richard Haugland who wrote (10786)	4/21/1998 12:47:00 AM
From: WTMHouston	Read Replies (2) \| Respond to of 13456

<<What is the explanation?>> re: the 2:1 volume.... I have no idea.... Re: the closing price... AOL also lists the closing price at 10 1/8, at 5:07 p.m. <<Last Price:10 1/8 at 17:07>> As does our official site....(but no time) tradepbs.com The only other time it has come up, a couple of folks were kind enough to post time and sales data that matched what I was given orally from the broker. Fortunately, this one is not a problem right now. I, too, am curious now though about what the NYSE considers the "closing" price. Troy

To: Richard Haugland who wrote (10786)	4/21/1998 1:35:00 AM
From: Frodo Baxter	Respond to of 13456

>I have read this statement numerous times but when I watch a low volume stock and buy say 1000 shares, I often (or always?) see the trade incremented by exactly 1000 shares, not 2000 shares. What is the explanation? Here's how it works: On NYSE and AMEX: 1000 sh APM seller -> 1000 sh APM buyer 1000 shares traded, 1000 shares reported On NAZ: 1000 sh APM seller -> Market Maker (usually) -> 1000 sh APM buyer 1000 shares traded, 2000 shares reported The market makers used to get in between EVERY trade; this was bad, because they were skimming the difference. Now, everybody has the chance to post the best bid/offer, but realistically, market makers still get in between most trades, albeit at lower spreads than before. So the question becomes: What good does a MM serve? A market maker provides LIQUIDITY. That means, there will always be someone to buy from or sell to you at some price at all times. Liquidity engenders less volatility, so the stock prices don't bounce around so much. In practice, due to the shenanigans of the MMs, the volatility of stocks actually decrease when they move AWAY from the 'daq. P.S. All you people who still follow APM, come back to the real thread. We could use some more Craig-bashing.