Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Market Makers - What They Do and How They Do It -- Ignore unavailable to you. Want to Upgrade?

To: Richard L. Williams who wrote (208)	3/26/1999 9:45:00 PM
From: RobbRacer	Read Replies (1) \| Respond to of 429

Rick MM's can and do sell short naked all the time (without inventory). You commment about the float effectively being much larger as a result is accurate. In BB stocks many market makers have huge shorts positions because that is how they make the majority of money in BB stocks. Most bb stocks have little liquidity therefore little incentive to make a market if they could not sell short. You have been incorrectly advised on this thread although I'm sure it was by accident. Rob