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Technology Stocks : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: CMon who wrote (2650)	3/2/1999 5:21:00 PM
From: James Wright	Read Replies (1) \| Respond to of 3645

"I did want to point out, however, one thing about your use of the change in volume to support your point. NASDAQ double counts volume. Take that into consideration and you'll see that there really hasn't been a change in the volume tof the stock you mentioned since it moved to the Board." Actually, NASDAQ does not double count. Rather, most NASDAQ trades are between MMs. This makes it look like double counts, because "joe citizen" places an order, and it then gets passed around with several trades between the MMs as they play the spread before the order is filled for the originator. As a result, "one" trade can result in several transactions -- it may be two, three or even more. As a general rule of thumb, you should divide NASDAQ volume by two to estimate the volume on the original orders. However, this is not a exact formula and, again, there is not an actual, automatic double count. Bottom line: The recent volume on NYSE reflects the true volume for original orders. The sporadic and high volume on NASDAQ reflected MM activity. Thus, my original point stands. Hope this helps. -- Jim