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Gold/Mining/Energy : Golden Eagle Int. (MYNG) -- Ignore unavailable to you. Want to Upgrade?

To: GC who wrote (7462)	7/4/1998 1:56:00 AM
From: GC	Respond to of 34075

Understanding MM...Might be of some interest Featured Report: Understanding Market Makers One of the key features of the Nasdaq market is its use of Market Makers. Market Makers are basically securities firms that use their own capital to buy and maintain inventory of a particular stock, then resell that stock into the market. If an investor wishes to buy a particular stock on the NASDAQ, the order is sent to a Marker Maker, who fills the order from their existing inventory of that stock. The Marker Maker then makes money on the "spread," which is the difference in the value at which they purchased the stock, and the value at which they sold the stock. Each Market Maker must register in order to "make a market" in a particular companies stock. The Market Makers can make a market in as many different companies as they choose. There can be as few as two or three market makers for smaller companies, and as many as 50 or 60 for large cap companies. They are registered members of the National Association of Securities Dealers (NASD) and are subject to strict trading regulations. For example, Market Makers cannot withdraw from trading a security without permission from the Nasdaq Stock Market, and this permission is granted only for very restricted regulatory reasons. Some other regulations that Market Makers must follow includes: a guarantee to execute each order at the best price available, a committment to buy and sell the securities in which they make markets, and they must agree to report publicly the price and volume of each transaction within 90 seconds of its completion. For investors the Market Makers are important for several reasons. Firstly, when purchasing securities on the Nasdaq, it is important to look at who the company's Market Makers are. Companies who have only two or three Market Makers may often get lost in the shuffle of the active Nasdaq Exchange. Also, companies who do not have big name Market Makers, such as Merrill Lynch, Morgan Stanley or Goldman Sachs, may also not command the attention and trading activity to make them successful. Having a good Market Maker is also important as Market Makers undertake other roles such as sponsorship of companies. The importance of having a good is seen also in their ability to attract attention to a particular stock. Market Makers may write research reports and increase the level of exposure in the marketplace for the companies they trade. It is important to understand the role of the Market Makers in the Nasdaq as this may help you make better investing decisions, and aid you in your search for quality small cap stocks in the United States. For more information on Market Makers, or any other Nasdaq related topics, visit nasdaqnews.com