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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Galpeer who wrote (9791)	10/26/1998 6:44:00 PM
From: Colin Cody	Read Replies (1) \| Respond to of 19331

Bruce, You described the normal way a MM makes an orderly market, as I posted in more detail here a couple days ago. If huge buying comes in the MMs would sell from their inventory, and if more buying comes in the MMs call sources (for instance occasionally I get a call soliciting a sale of a stock I have a large position in), and then they sell shares SHORT if even more buying comes in. That's making an ORDERLY MARKET. Some here think this is "those bad old MMs" If MMs didn't try to keep an orderly market, then when they sold the last of their inventory, at say $1.60 this morning, the next buy would #1 not be filled immediately, and #2 when it did get filled, it might be at $2.60 a share. Then in an hour of someone wants to sell (assuming there's no buyer there at the same instant), the stock would drop to $.75 for that trade. The MMs do the Market a SERVICE by stabilizing the Markets, giving us LIQUIDITY, and that means selling short temporarily when someone wants to BUY RIGHT NOW and no shares are available! So logically their is RISK in selling a firecracker like DCTC short, and the MM want to cover A.S.A.P. Colin