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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: Lee Lichterman III who wrote (3429)	7/26/1998 6:50:00 PM
From: steve goldman	Read Replies (1) \| Respond to of 4969

The terminology is specialist, employed to maintain an orderly market. If an imbalance comes, they can buy/sell out of inventory but only a prices superior to customer orders.. ie..stock is 10 x 10 1/4....they cant buy at 9 3/4 until they fill the clients at 10....but imagine they get a piece in...they sell to the bidder at 10 then take in stock at 9 3/4.. specialists make the market on the list exchanges. strongly recommend you take a look at the yamner library on the various exchanges...http://www.yamner.com/library. Nothing says the stock doesnt tank and the specialist doesnt get knocked around. Remember, he can drop the bid and determine where a reasonable price would be to take the piece. If its too low, other bidders will step in with superior prices and he gets nothing. Specialists dont want to do this, and when they do they dont necessarily do it at reasonable prices, they might spread it out a bit. Regards, Steve@yamner.com