Allstocks.com's Bulletin Board: newbie...and i hate to ask this

This is topic newbie...and i hate to ask this in forum General Investing Topics at Allstocks.com's Bulletin Board.

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Posted by billy3ci on :

can someone please explain the MM's role in all this penny stuff. i hear people blaming them all the time controlling the price.

Posted by PAUL on :

The concept of MM's does not bother me. Their purpose is to make sure there is always a market for the stock. This way when you want in, you can get in. When you want out, you can get out. That is why MM's always have a BID and ASK price for the same stock. Not unlike ANY other business.

If I am trying to make a living selling ROCKS then I will publish to my suppliers what I want to pay for rocks. I will publish to all that want to buy, what I am willing to sell my rocks for.

Then at any time, anyone, can walk into my "market" and sell or buy as they desire. (at my prices). Nothing wrong with this in my opinion.

With out this, I may go to the "marketplace" with a basket of rocks and find Hey! no one wants to buy rocks today! That aint good, I need to buy some corn to eat tonight. OR I go to the "marketplace" and NEED some rocks for my sheep that are getting eaten by wild dogs. Oh! no there is noone here to sell me rocks today, that aint good.

OK the solution..... The Market Maker. I am glad he is there.

He just needs to stop selling so many rocks he has not bought yet. Note I say SO MANY. There are times when someone may come to the "marketplace" NEEDING the rocks that the MM does not have. What is to be done... The MM selss the rocks knowing he will buy some late today and then he will deliver them to the buyer.

The system is NOT ALL BAD.

It just needs some refining.

Hope this helps.

PAUL

------------------
But godliness with contentment is great gain.
For we brought nothing into this world, and it is certain we can carry nothing out.

Posted by VNGNTN1 on :

BILLY
You can avoid all this MM trouble by trading "REAL" stocks on the bigger boards.
VAN
PS Don't buy any of Pauls rocks. There just rocks.(Sorry Paul you didn't memntion if there was Gold in them thar rocks)

[This message has been edited by VNGNTN1 (edited February 13, 2004).]

Posted by microdaytrader on :

[QUOTE]Originally posted by VNGNTN1:
[B]BILLY
You can avoid all this MM trouble by trading "REAL" stocks on the bigger boards.
VAN
PS Don't buy any of Pauls rocks. There just rocks.(Sorry Paul you didn't memntion if there was Gold in them thar rocks)

[WELL I AM HOPING THERE ARE DIAMONDS IN THEM THERE ROCKS
Roy