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To: Freddie Forte who wrote (16256)5/9/1998 2:50:00 PM
From: dave brown  Read Replies (4) | Respond to of 27968
 
MM's are not going to create illusions, its illegal. Just like price fixing is illegal in other industries. MM's are people, they can't wait to go home each day, they can't wait until vacation, and they hope they hit the lottery. They aren't going to lose their jobs over price manipulation of a penny stock. MM's post a bid and an ask, and the number of shares available at each price. They create inventory when they have to buy from you at the bid. They create a short when you want to buy from them at the ask. When MM's go short because of lack of inventory (sellers) that is when they raise the bid to cover the short. The spread widens when they have a large inventory because they no longer need sellers in order to satisfy buyers. When inventory shrinks the spread narrows because the MM's have had to raise the bid to ensure not going short. Anyone who says they short as a tactical move doesn't understand the system. On this thread it is only used to cover up the real reasons this stock is not flying. The laws of supply and demand rain supreme.