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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Mark Kubisz who wrote (4881)	6/3/1998 7:36:00 PM
From: Charles Skeen	Read Replies (1) \| Respond to of 18016

<<Market maker . . >> They perform the same function, but are not quite the same thing. A specialist works on the floor of the NYSE (or the TSE, I presume). ALL trading in a given stock must go through THE specialist in the stock. That specialist will try to balance orders, or may go long or short depending on his assessment of the market and of order flow. A market maker works in an office at his NASDAQ computer terminal, posting bid and ask prices for stocks. An active, large-cap NASDAQ stock may have 15 or 20 or more market makers trading in the stock. Individual's orders are placed with these market makers -- your broker hopefully selecting the best deal from the offers on the terminal. It is generally believed that market makers are more inclined to "manipulate" prices than are specialists. For one thing, specialists are under the direct surveillence of the exchange and they are supposed to maintain an orderly market. Of course, as commented in other messages, manipulation may originate with institutions and other large traders. This would be much easier in the case of smaller, less actively traded stocks than with larger. Comments from those more knowledgeable than me are welcome. Charlie.