what happens when the mm'S own half the o/s and a r/s happens.....why would they buy when they know it's going to happen? Thanks
Posted by Thorn on :
99% of the time, the price goes down following the r/s...usually before you can trade it. It could be down 50% or more before it is tradeable.
Once in a blue moon, it actually goes up.
Posted by one2watchny on :
quote:Originally posted by Thorn: 99% of the time, the price goes down following the r/s...usually before you can trade it. It could be down 50% or more before it is tradeable.
Once in a blue moon, it actually goes up.
I mean before the R/s happens.....
Posted by Thorn on :
Sorry, I don't know.
Posted by BuyTex on :
think you're on to a good question, there, o2ny--care to try again? not quite following you...
Posted by Ric on :
MM's hold a lot less shares then people put out on the board. The shares are actually held and shorted at the DTCC which has a private company Cede & Co. owned mainly by finacial institutions. MM's are usually just the middle man making most on the spread. What most blame on the MM's is actually the DTCC's doing. Of course the MM's work closely with the DTCC and the do help with the manipulation.
Now the DTCC loves a r/s if they are short. What happens after a r/s? Usually the share price plummetts. Now their short shares are r/s'd at the same rate. Now they have a smaller short at a cheaper price. They actually like to short more right before the r/s on the hype that usually pulled off before the company does it.
Posted by BuyTex on :
quote:Originally posted by Ric: MM's hold a lot less shares then people put out on the board. The shares are actually held and shorted at the DTCC which has a private company Cede & Co. owned mainly by finacial institutions. MM's are usually just the middle man making most on the spread. What most blame on the MM's is actually the DTCC's doing. Of course the MM's work closely with the DTCC and the do help with the manipulation.
Now the DTCC loves a r/s if they are short. What happens after a r/s? Usually the share price plummetts. Now their short shares are r/s'd at the same rate. Now they have a smaller short at a cheaper price. They actually like to short more right before the r/s on the hype that usually pulled off before the company does it.
agreed.
folks who "boogey-man" the MMs?
suggest homework on DTCC...
Posted by metal1 on :
DTCC does not do any trading. they are just a clearing/depository/stock info firm
Posted by BuyTex on :