The Microcap Kitchen: Stocks 5¢ to $5 Message Board

To: Ted M who wrote (105848)	11/15/2011 10:37:26 PM
From: rogerover	of 111451

Ted, I wasn't suggesting that market makers don't affect stock prices - just focusing on the nonsensical term "walked down," which suggests that two or more parties are in cahoots (Party A posts a bid, Party B hits it, Party A drops to a lower bid, Party B or C hits it, Party A lowers the bid again, etc.). Sometimes these market maker conspiracy theorists will call it a "controlled walkdown." All of this suggests that the conspirators are purposely driving the stock price down, when in reality 99% of the time it is just plain old selling by someone who wants to get out. MMs don't want to get stuck with inventory in a thinly traded stock so they'll take in the minimum number of shares (5,000 for low-priced stocks) and then lower the bid, and probably also become the low offer to get rid of the stock ASAP for a small profit. Larger size bids and offers generally represent orders from real live people rather than from the MMs themselves.