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To: Ditchdigger who wrote (8774)6/12/1998 8:12:00 PM
From: Kurt N  Read Replies (1) | Respond to of 11888
 
A MM can stop market-making activities and pull out at anytime, although if they do I believe they may not re-enter for 30 days. No reason necessary.

Although putting in a bid like say .50 or $1, and a ask of say $3 or $4 when the inside bid/ask is $1 29/32 by $1 15/16, would effectively do the same thing (ie. they aren't buying or selling, waiting to see which direction the wind is going).

If a MM either has the high bid or the low ask, and a sell/buy market order(s) are placed the MM must execute them (up to the number of shares that they quoted, before changing the price)

Kurt