Posted On: 03/13/2013 11:02:47 PM
Post# of 11899
RE the alleged shorting, it has been explained many times, but Cassandra recently put the ludicrous idea to rest here:
Cassandra
Tuesday, January 08, 2013 1:55:41 PM
Re: Kingpin post# 117220
Post # of 146668
There was no "shorting" of SRGE stock by MMs or retail and there will be no "MOASS."
MMs do not "short" penny stocks. As part of making a market, they may have periodic short positions throughout a trading day if they fill buy orders for more shares than they have in inventory, but they also often have inventory when they fill sell orders. Having an inventory does not mean that they are going "long" any more than having a temporary net short position is "shorting." This kind of temporary short position is legal and necessary for efficient trading . The grey market shows how trades work when MMs don't make a market.
This article explains why retail traders don't short penny stocks:
Cassandra
Tuesday, January 08, 2013 1:55:41 PM
Re: Kingpin post# 117220
Post # of 146668
There was no "shorting" of SRGE stock by MMs or retail and there will be no "MOASS."
MMs do not "short" penny stocks. As part of making a market, they may have periodic short positions throughout a trading day if they fill buy orders for more shares than they have in inventory, but they also often have inventory when they fill sell orders. Having an inventory does not mean that they are going "long" any more than having a temporary net short position is "shorting." This kind of temporary short position is legal and necessary for efficient trading . The grey market shows how trades work when MMs don't make a market.
This article explains why retail traders don't short penny stocks:
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