Recent

% | $
Quotes you view appear here for quick access.

Visual Networks, Inc. (VNWK) Message Board

you are viewing a single comment's thread.

view the rest of the posts
  • ahhaha2 ahhaha2 Feb 8, 2003 11:06 AM Flag

    MM locking the bid and ask again? 2.04

    [Paltry volume and yet the MM appears unable to promote a market...curious approach.]

    Where do you get this fictitious notion that MMs promote markets?

    For that matter what do you mean, "promote a market"?

    [Trend is clearly positive yet the MM seems to be holding the stock back.]

    What is this "holding back"? Just how does an MM hold a stock back?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • Perhaps a poor choice of words, how about -- "make a market"?

      I expect the MM (perhaps you?) to provide an environment that promotes the exchange of shares by interested buyers and sellers. What we have seen recently is the so called locking BS where buyers and sellers are confronted with an identical bid and ask and an inability to either buy or sell. That is then followed by a spike in volume and trades that appear to have been organized.

      • 1 Reply to life_is_a_carnival
      • [I expect the MM (perhaps you?) to provide an environment that promotes the exchange of shares by interested buyers and sellers.]

        This is what an exhange does. An MM's role in a market is to manage the public's bids and offers and supply those when the public won't in order to maintain price continuity. The MM does not attempt to influence price although no amateur believes that. Any MM trying will end up out of the business, because the market machinery is only profitable to the MM when the rules are strictly followed.

        My remarks above only pertain to MMs handling OTC trades. All the stocks on the NAZ are handled primarily by computers. What most blame on MMs is actually the greedy public playing all sorts of ridiculous games trying to defeat their mistaken myths of the market process.

        [What we have seen recently is the so called locking BS where buyers and sellers are confronted with an identical bid and ask and an inability to either buy or sell.]

        You are confronted with what reporting agencies happen to provide you at any instant. The reality is only determined by executions. Your remarks indicate that you assume the market process is perfectly continuous, an assumption which rests on the view that reports reflect some reality, but that's false. Reality is discontinuous and what you get is whatever the market will discontinuously bare at an instant. Also, the trace shows no lock or cross even though VNWK is a sparsely traded stock.

        [That is then followed by a spike in volume and trades that appear to have been organized.]

        You can see whatever serves your distrust, but taking that attitude won't earn you a dime. It will preclude you from making money though. You have to be naive, trust good assessment, and hold, to succeed with stocks.