What do you imagine when you hear the term Market Marker (MM)? The first thing that appears is the person who manages or accommodates the share purchase money, right?
But, what exactly is a Market Marker? Let’s discuss!
The development of technology make information easy to convey. So that everything is also easy to go viral, including stock investment activities.
Currently, many people are interested in investing stocks. They also want to know how stocks provide benefits, and what the risks are.
Before going any further, I would like to first explain the term “Market Marker”. Why? Because later, this term will be very much encountered when you invest in stocks.
Market Marker can manipulate stock prices
Thus, a dealer or what is commonly known as a “market maker” is a group of market players who are able to play or manipulate stock prices.
The activity of manipulating share prices by market makers is commonly known as “stock frying”.
In short, it is the dealer who regulates the course of the stock wheel, even though it is not 100%, but the presence of this dealer is very influential, you know.
However, this share frying activity is actually not allowed and is an illegal activity. Even though it was banned, there were still more and more bookies who were involved in the world of stocks.
Usually stocks whose movements are manipulated by the dealer, the price will suddenly rise and fall even though usually there are almost no transactions.
In general, the stocks which prices are moved easily are cheap small cap stocks.
Read now: The Benefit of Value Investing