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Technology Stocks : IFLY - travel sales on the web pure play -- Ignore unavailable to you. Want to Upgrade?


To: Prophet who wrote (1137)5/12/1998 4:06:00 PM
From: Kevin  Respond to of 4761
 
the only suitable explanation of the tight spread
phenomena for IFLY


When spreads are narrow the MMs usually have more confidence in the stock themselves because of good demand on both sides, wheras, when the spreads are wide the opposite holds true. Furthermore, when spreads are narrow the MMs are less likely to get stuck holding stock in inventory at the end of the day if they don't want to. (IMO)