Post by
shareholders1 on Oct 07, 2021 7:24am
Market maker and shorting
My understanding is the two do not go hand in hand.
I believe market makers (institutions) are assigned particular stocks to ensure there is an orderly market - one example being to ensure there is not a large spread between bid and ask. There is more of a role for market makers for thinly traded stocks as compared to stocks that are very liquid. Market makers may also be required to make up the balance of an order placed at the asking price, so that investors are able to buy at least a minimum number of shares at the Ask. Again, this would apply to thinly traded stocks.
I would read the various posts about "shorts" controlling the price with caution. There are traders on this board looking to create some advantage/ minimize their disadvantage.
I would also read any short report and certain posts on this board with some skepticism. Would there be significant shorts still in place ahead of a binary outcome?
Comment by
Justhalffull on Oct 07, 2021 3:14pm
You are right about the TSX market makers shareholder. TSX-v is a bit different. Listed firms arrange for their own mm's, often several of them.