Stock FAQs

what is mm in stock talk

by Camren Kub Published 3 years ago Updated 2 years ago
image

What Is a Market Maker? The term market maker refers to a firm or individual who actively quotes two-sided markets in a particular security, providing bids and offers (known as asks) along with the market size of each.

What does mm stand for?

Aug 31, 2021 · One Man Picture: A situation in which the bid quote and ask quote for a security is provided by a single source. A one man picture is a two-way price given by a broker to an investor.

What do most mm's not know about the fundamentals of stocks?

Jun 15, 2016 · This is where market makers come in. Market makers—usually banks or brokerage companies —are always ready to buy or sell at least 100 shares of a given stock at every second of the trading day at the market price. 1 2 They profit from the bid-ask spread, and they benefit the market by adding liquidity. Market demands dictate where market ...

What is a market maker (mm)?

Market maker signals are the signs broker-dealers or market makers send each other to move stock prices. You can see all of the buys and sell share amount orders in real-time during trading hours when the markets are open, making it easier to figure out what’s going on with the direction of a company’s share price.

Why is my mm so short on BB stocks?

Nov 07, 2019 · MMs follow a simple code of business when making a market in a stock especially an OTC BB. That is the level that stocks will seek that yields the most volume. Now this is very important because...

image

Do MMs short stocks?

The rules, which allow Market Makers (MMs) to naked short stocks, should absolutely be changed. The behavior, which results from this activity, under any other circumstance would be criminal.

Do market makers manipulate price?

Market Makers make money from buying shares at a lower price to which they sell them. This is the bid/offer spread. The more actively a share is traded the more money a Market Maker makes. It is often felt that the Market Makers manipulate the prices.

What are MM signals?

Market maker signals are the signs broker-dealers or market makers send each other to move stock prices. You can see all of the buys and sell share amount orders in real-time during trading hours when the markets are open, making it easier to figure out what's going on with the direction of a company's share price.

What is total volume mm shares?

Volume is counted as the total number of shares that are actually traded (bought and sold) during the trading day or specified set period of time. It is a measure of the total turnover of shares. Each ticket represents a trade and counted towards the total trading volume.

How do you trick a market maker?

Trick #1: Giving Phony SizesMarket makers may buy your shares for their own accounts and then flip them hours later to make a personal profit.They can use a stock's rapid price fluctuations to log a profit for themselves in the time lag between order and execution.More items...

How do you push a stock price up?

Confidence in the stock market can also push up demand and prices for individual stocks. If investors believe that stocks are a good investment, either because valuations are attractive or because the stock market has been trending upwards, an increase in demand for stocks can push up prices across the board.Jan 2, 2022

Are mm signals real?

The ripples that market makers cause to bid and ask prices are real, although they're generally restricted to penny stocks and micro-caps.

How do you know if a stock is being manipulated?

If they're presenting a coherent argument for the stock's decline, backed up by data and a reasonable thesis, that's different. But if your fellow investors are as bewildered as you are by the stock's movement, then your stock is probably being manipulated by Wall Street parasites.Feb 11, 2021

How does Virtu finance earn?

So, the company's revenue is made by commissions, fees, and execution/market-making services. A trader using Virtu Financial is paying for the services, for the liquidity, for trades, etc. The company also makes money on the bid/ask spread when they buy/sell securities.Feb 4, 2022

Is high volume good for stocks?

If you see a stock that's appreciating on high volume, it's more likely to be a sustainable move. If you see a stock that's appreciating on low volume, it could be a dead cat bounce. Logically, when more money is moving a stock price, it means there is more demand for that stock.

What is a good volume for stocks?

Thin, Low-Priced Stocks = Higher Investment Risk To reduce such risk, it's best to stick with stocks that have a minimum dollar volume of $20 million to $25 million. In fact, the more, the better. Institutions tend to get more involved in a stock with daily dollar volume in the hundreds of millions or more.Nov 12, 2019

Is low volume good for stocks?

The reality is that low-volume stocks are usually not trading for a very good reason—few people want them. Their lack of liquidity makes them hard to sell even if the stock appreciates. They are also susceptible to price manipulation and attractive to scammers.

What is a specialist in stock market?

A specialist is one type of market maker who often focuses on trading specific stocks.

Why do market makers want compensation?

That's why market makers want compensation for creating markets. They earn their compensation by maintaining a spread on each stock they cover. 5 . For example, consider a hypothetical trade of IBM shares.

How do market makers help the market?

Market makers encourage market liquidity by standing ready to buy and sell securities at any time of day. Without market makers, far fewer trades would happen and companies would have more limited access to capital. Market makers profit on the difference between the bid and ask prices on their trades.

What is a market maker?

Market makers are high-volume traders that literally "make a market" for securities by always standing at the ready to buy or sell. They profit on the bid-ask spread and they benefit the market by adding liquidity. The speed and simplicity with which stocks are bought and sold can be taken for granted, especially in the era of app investing.

What dictates market demand?

Market demand dictates where market makers set their bid prices (what they're willing to pay for shares) and ask prices (how much they're demanding), but market makers must always quote both prices for their trades.

How long does it take to place an order with a brokerage?

It takes just a few taps to place an order with your brokerage firm, and depending on the type of order, it can be executed within seconds. Without market makers, however, trading would slow down significantly.

Can you buy 100 shares of Disney?

Whenever an investment is bought or sold, there must be someone on the other end of the transaction. If you want to buy 100 shares of Disney, for example, you must find someone who wants to sell 100 shares of Disney. However, it's unlikely that you will immediately find someone who wants to sell the exact number of shares you want to buy.

What Are Market Maker Signals (Example Pictures Bottom Page)

What are market maker signals? Market maker signals are the signs broker-dealers or market makers send each other to move stock prices.

How To Read Trading Signals From Market Maker Brokers

Buying stocks or shares is when you buy them from another person selling them. On the other hand, a selling signal happens when your buy order is higher than the next person’s “sell” order.

Market Maker Signals 100

What does the Market Maker Code 100 Mean? A market maker needs shares when you see the 100 number on the time and sales level 2 order book.

Market Maker Signals 200

What does the Market Maker Code 200 Mean? The market maker code 200 means I need Shares badly but do not take the stock down.

Market Maker Signals 300

What does the Market Maker Code 300 Mean? Slippage occurs when a broker takes the price down too far to fill an order.

Market Maker Signals 400

What does the Market Maker Code 400 Mean? The market maker signal 400 is a significant indicator for traders.

Market Maker Signals 500

What does the Market Maker Code 500 Mean? The market maker code 500 signals “gap the stock” either upwards or downwards from the current trading price.

Do MMs cover up or down?

Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular.

Do MMs have a clue?

Most MM's don't have a clue as to the value of a Company until they get trapped. If the Company has solid fundementals and a bright future. Then the stock will do very well. And the activity that caused the situation will prove to even help the future stock activity because it created an audience.".

Does the poor MM cover?

Alas the poor MM does not get to cover. Now comes various tactics like stalling, boxing, or even locking the Bid and Ask for a while. Of course, MMs aggressively deny any sort of collusion designed to fix quotes or spreads, but a recent SEC investigation tells another story.

What happens when MM is short?

If MM is short Alpha, the average price should be above the current market price, so that the net short position can be closed out at a profit by buying back Alpha shares at a cheaper price. Market-maker spreads widen during volatile market periods because of the increased risk of loss.

How do MMs make a living?

MMs earn a living by having market participants buy at their offer and sell to their bid over and over again, day in and day out. The market-maker spread can be considered a measure of the liquidity (i.e. the supply and demand) of a particular asset.

Why are market makers more willing to bid?

As market makers are more willing to bid or offer, there are larger sizes on the spread, and larger volumes can transact without moving the market too much. Market-maker spreads tend to be tighter in more actively traded names, and in those that have more market makers available to make markets.

What is market maker spread?

What Is the Market-Maker Spread? The market-maker spread is the difference between the price at which a market-maker (MM) is willing to buy a security and the price at which it is willing to sell the security. The market-maker spread is effectively the bid-ask spread that market makers are willing to commit to.

Can market makers profit from executing thousands of trades in a day?

While the spread between the bid and ask is only a few cents, market makers can profit by executing thousands of trades in a day and expertly trading their “book.”. However, these profits can be wiped out by volatile markets if the market maker is caught on the wrong side of the trade.

What is MM in retail?

MerryMart Consumer Corp. (MM), formerly Injap Supermart Inc., was incorporated and registered with the Securities and Exchange Commission (SEC) on September 9, 2009. Its primary business mandate is to “engage in the business of buying, selling, manufacturing, distributing, marketing at wholesale and retail of consumer goods including liquor and agricultural, meat, and fresh products.” After operating for several years using the name “Injap Supermart Inc.”, in 2019, the SEC approved the company’s request to change the name to “MerryMart Consumer Corp.”

What percentage of MM dividends are declared?

MM’s current dividend policy provides that up to 30% of the preceding fiscal year’s net income after tax can be declared as dividends, subject to (i) the availability of unrestricted retained earnings, (ii) implementation of business plans, (iii) contractual obligations, and (iv) working capital requirements.

How many stores does Pgold have?

PGOLD opened its very first branch in 1998 and, as of 2020, only operates 423 stores. PGOLD took more than 20 years to scale its operations to the current 423 branches, so MM’s target of opening 1,000 stores within 10 years might be too optimistic given the fierce supermarket industry in the country.

Who owns Merrymart?

MerryMart is currently 100% owned by Injap Investments In c., the same company that owned and operated Mang Inasal before it was sold fully to Jollibee Foods corp. (JFC).

Does MM pay dividends?

The declaration and payment of dividends is subject to compliance annually or as often as the Board of Directors may deem appropriate, in cash or in kind and/or in additional shares from its surplus profits. The ability of MM to pay dividends will depend on its retained earnings level and financial condition.

Why is the market maker happy at $4.90?

At $4.90, the customer is happy because he would have paid up to $5.00 and the market maker is happy because he sold the shares to the client $0.10 higher than it cost him and he made a tidy profit of $2,500.

Do market makers show their hand?

Market makers will almost never show their hand to let others know what order they are working. For instance, let's say a market maker for at a major firm receives an order to purchase 25,000 shares of a stock at a $5.00 limit for an institutional client. He will never bid for the full 25,000.

Can a market maker ask for more than 500 shares?

Market makers will almost never post a bid or ask for more than just a few hundred shares no matter how large their true need is. So if you do see a market maker from a large firm posting a bid for 500 shares, there's usually thousands of shares behind that. Unless he's selling signals and not selling just stock.

What does ADR mean in stock?

ADR – average day range over a certain period number of days, example: ADR (30) – the higher the number the more volatile. DD - Due diligence, do your homework on the stock, news, earnings, fundamentals etc. Shoooooop – often referred to when a stock starts to tank hard.

What does green to red mean?

Typically NOT used near market open. Proper usage is when a stock has retreated from a high or low, then later makes a new high or new low. Green – Price is above previous day’s close. Green to Red (G/R) – Stock was above prior day’s close, but now has dropped below it.

Why do we need multiple units for nursery stock?

Why do we need multiple units? Because all plants are uniquely different and grow differently. In any of those 3 size units, it’s safe to equate a smaller number with age, weight, and price.

What does 25 mean in a container?

And vice versa, a larger container number (i.e #25 Container) generally means the plant is more mature, heavier weight, and higher price. A quick note about containers. The term “gallon” is a moniker carried over from the past when growers used to grow plants in milk jugs.

What is a caliper tree?

Caliper is the measurement of the diameter of a tree trunk, in inches. These trees are planted as babies in farm fields and grown to more mature sizes. When they’re harvested, the root zone is wrapped in burlap, set in a wire cage to protect the root mass, and safely held together with twine – called balled & burlapped (B&B) plant stock. Johnson’s Nursery measures caliper at 6” above the root flare. In our inventories, you’ll see 1.5” caliper (the smallest size we’re willing to sell a field-grown tree) and up. A homeowner is likely able to transport a smaller tree from 1.5” to 2.5” caliper without professional help. We recommend delivery beyond that size.

What is a #5 container tree?

Containers are light-weight, easy to transport in bulk, and allows us to offer certain trees outside of standard harvest dates. A lower container number (i.e #5 Container) generally means a younger, lighter weight, and lower price plant. And vice versa, a larger container number (i.e #25 Container) generally means the plant is more mature, heavier weight, and higher price.

How much does a 1.5 caliper tree weigh?

To put this into perspective, the weight of a 1.5” caliper tree can be 250lbs; the weight of a 6.5” caliper tree can be between 2500-4500lbs – depending on the type of tree. Johnson’s Nursery often manages specimen tree and evergreen projects where a single tree occupies an entire semi.

Why are root maker containers so popular?

RootMaker Containers. These are an exciting size of container because they're specially designed to produce a stronger plant. They're designed in such a way to allow root pruning to automatically happen, which creates a more fibrous root system.

Is #10 milk container accurate?

Although still commonly used to describe the size – it’s not technically accurate. Nursery containers are not volumetrically accurate to milk gallons. In addition, container manufacturers often have different sizes for the same container, meaning the size of an empty #10 container may vary slightly among manufacturers.

image
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 1 2 3 4 5 6 7 8 9