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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Richard Nisbet who wrote (5312)	4/9/1999 7:44:00 PM
From: Rande Is	Respond to of 57584

LOL, that figures. I guess it means different things to different people. I can't give you "official" definition. But I can tell you what it means to most traders. Check the NASDAQ or other such websites for lists of terms and their definitions. Brokerage Houses buy and sell stock just like we do. When they begin to cover a stock it means they are taking an official position. This can mean that their analyst may publish an official recommendation to buy, sell, hold, and a thousand areas of grey in between. . .market perform, market outperform, strong buy, aggressive buy, hit somebody over the head and steal their shares. Now here is the sick part. . .just because a brokerage initiates coverage in a stock, it does NOT mean that they automatically are buyers of the stock or hold a long position. There are some that put out a "BUY" recommendation for the purpose of generating activity and thru buyers drive the price up for no other reason than so that they can sell into the buying or even take short positions at higher prices. Likewise a "sell" recommendation could cause a sell-off where a broker would buy cheap or cover lower. This is done every day by brokers. If anyone does it that is not a broker, it is called pump and dump and violates SEC regulations. When a broker does it, it is probably also a violation. . .but I doubt if there have been many prosecutions. Bottom line. . .whenever ANYONE tells you that you should buy or sell any stock at any time.. . .who has the upper hand? Rande Is