Sometimes you do wonder about the mechanisms and motivations behind the action such as this morning. A while back someone posted an article on how the MMs work, if you can call it work. I don't remember the details, but it sounded like a few brokerages can check in (by computer?) and any of them can suggest a price. Something about the one that makes the suggestion is called "the Ax". I assume he is the one that has to be willing to buy or sell at that that price, at least some shares. Maybe 100? If some other broker takes him up on that, he pushes the yes button and the trade is automatically registered somewhere and is automatically posted somewhere else, for public display. But who are these low stakes trading brokers? Are they in a couple of those tall buildings in New York? Are they down the hall from each other? Adjacent cubicles? Do they get bored easily? Is $8.50 enough to cover the electricity for lights, elevators, computer connections, etc.? Do they have a PACER account? Can they check it in the morning before making a bid at 8.5 cents? Can they read? The sports page? The handwriting on the wall? So many questions...
Newport Tom
