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.

Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: NickSE who wrote (45211)	6/6/1999 9:37:00 AM
From: NickSE	Read Replies (1) \| Respond to of 86076

ho ho ho....NAZ rumblings from a former Market Maker #reply-9990455 #reply-9990553 .....The NASD has made several rule changes in the last year and a half to try to get some good press and to lure stocks to its exchange.. First and foremost the reduction of the minimum trade a Market maker must be liable for was reduced from 1000 shares to just 100 shares ..this basically produced the huge volatility we now see in the markets ..a stock that would have normally gone up 3 or 4 dollars in a day is now moving 20 and 30 points in a day..The NASD eliminated the excess spread rule ..thereby minimizing exposure that market makers have at any given moment to almost zero..and placing all risk on the shoulders of the public ..these two rules together are fatal for most people..market makers can jack up a stock on little volume and "step aside" as ECN's which are run by unsophisticated traders..take a stock up 10 20 or 30 points ..then they step in when they see that buying has died down and the stock is 20 30 even 50% higher on some crap news..like a deal with yahoo or something then they in turn now use the ECN's and place huge fake bids just below prevailing high bids and sit on offer..shorting naked to the public who see a huge buyer an eighth or quarter point lower so they think its still a buy..only to see those buy orders get cancelled after the shorts have been established...and then the market makers step aside again..and when the hype dies and the frenzy is over... The stocks get punished severely by the same people who bought it up.....