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Non-Tech : Iomega Thread without Iomega -- Ignore unavailable to you. Want to Upgrade?

To: mr.mark who wrote (6227)	1/21/1999 2:43:00 PM
From: gil schmidt	Read Replies (2) \| Respond to of 10072

<<let's remember when someone says that there was "strong buying at eod", it can also be said that mm's were getting rid of excess product. and conversely, when we see all red, and "sellers" are everywhere, often there are mm's there scooping it all up gladly>> C'mon now. IOM is on the NYSE. NO such thing as "market makers" on NYSE stocks. "Specialists" handle the order flow matching buyers to sellers. GFS

To: mr.mark who wrote (6227)	1/21/1999 2:46:00 PM
From: Cogito	Respond to of 10072

Mr. Mark - re: block trades, sells or buys? I have discussed this question with a broker friend who is knowledgeable about these things. When you see a news item saying "block trade: 300,000 shares at 9 7/8, crossed by Bear Stearns" it normally does not mean that someone sold 300,000 shares and someone else bought 300,000 shares. What usually happens is this: King Hussein (just to use an example) wants to sell a large block of stock in XYZ Corp. He contacts his brokerage and tells them so, and sets a limit price for the sale. That price, in the case of a large block sale, will usually be slightly below where the stock is trading at the time. The brokerage then scrambles to find enough buyers to cover the sell order. The brokers call their customers and tell them that there is an opportunity to buy XYZ at a price of X. There might be dozens or even hundreds of individual buyers. Once they have lined up enough buyers, the trade is executed. There might be dozens or even hundreds of individual buyers. In the case of a large block buy, the scenario is reversed. There's one big buyer, many smaller sellers. The buyer has to be willing to pay a price somewhat higher than the current Ask, because otherwise nobody will be motivated to sell. The easiest way to see if a block trade is a buy or a sell is to see what the stock price does just after the trade crosses. If it rises, the block trade was a buy. If it falls, the block was a sell. Looking at the price action following the large block trade of IOM crossed by SSB earlier this week, we see that the price rose following the trade. Thus, most likely, it was a buy. - Allen