Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Angel D who wrote (47821)	6/6/1998 10:51:00 AM
From: Icabod	Read Replies (1) \| Respond to of 55532

FYI. Herzog is a wholesaler. HRZG is his symbol. A wholesaler get's a call from a number of other brokerage firms. They would not know if the firm that calls them is shorting stock or selling long stock. Most of the time they trade flat. But sometimes they will short small positions in their inventory to allow them the flexibility to take in stock from one of the firms that would give them the call. An example. Suppose Merrill Lynch had a customer selling 100,000 shares of RMIL. Merrill does not make a market in RMIL, so they would call HRZG who makes a market in most active stocks and tells them they have a customer who wants to sell 100K RMIL. HRZG would then go to the market and start creating a short position by banging the bids out of their inventory. As soon as they became short 100,000 RMIL, the trader then calls Merrill Lynch and tells them they can take the order from Merrill's customer. Job done. But HRZG would not know if the customer is shorting stock or selling real stock. Typically, HRZG does not do a lot of naked shorting. In other words, they almost always work off customer orders. I hope this answers your questions.