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.

Strategies & Market Trends : Analysis Class for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: David Meyer who wrote (970)	6/22/1998 9:23:00 AM
From: Arthur Tang	Read Replies (2) \| Respond to of 1471

Market making was written in previous posts. Just search for "market making". In the trade, you have to have stock pool as inventory of stocks. You have to have cash pool to buy stock, people want to sell. When you have sufficient amounts of both, the stock price is steady and firm and can have nice moves. Therefore, there is no risks for market maker's customers or any other investors. If you find a stock, such as GE, GE is now its own stock and cash pool, by buying back their own stock. Or IBM, buying back their own stock, made nice moves for quite a few years. There are many other stocks. Tang fund has a few stocks with the proper stock and cash pool. Stock pools and cash pools are sometimes the best customers of the market maker.