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Microcap & Penny Stocks : TSIS: WHAT IS GOING ON? -- Ignore unavailable to you. Want to Upgrade?

To: Popiye who wrote (2225)	5/23/1998 8:57:00 PM
From: Don Pueblo	Respond to of 6931

I'm tied up right now, but I can point you in the right direction. First, check out this site, it has a lot of good information invest-faq.com I found it on a thread that I think is really good, if you have not seen it, take a look at all the different posts, there is a lot of good stuff here #Subject-18891 To answer your question: let's take a firm, "Bear Securities". They have traders that trade maybe 10-15 stocks each. If you want to buy MSFT for example, and your broker clears through "Bear", one of the traders that works for "Bear" and trades MSFT will execute that trade for your broker. If your broker's firm makes a market in MSFT, then your broker's firm's trader will handle it. The man with the order makes the rules. That trader will not hold MSFT or have an inventory of MSFT or anything else. He trades MSFT. Bear may have a trader that trades for the "Bear Account" (this is an example, just so you get the idea, he is also a "trader" but not the same thing. The individual investor that day trades is also a trader, so there are three different definitions here). That guy is just a trader, he may be buying or selling MSFT "on his own" with the firm's money. He works for "Bear", he is licensed, but nobody ever gives him an order, he is not connected to the general public. There are times and situations when a firm that makes a market in a stock may have an inventory of that stock, and there is the potential for some interesting stuff happening. That is a different story, but the point here is that this idea that floats around SI that market makers are "making the stock go up and down" is just BS. Does that happen? Probably. Is it against the law? Yes. The potential gets greater the smaller the deal and the thinner the float, but in general, market makers do not control a price. The public controls the price with their buy and sell orders, and that is the simple truth. All MHO!