Penny Stocks Definition
Can anyone tell me what/who MM’s are in reference to the stock market and resistance levels?
I’ve been dabbling in penny stocks lately and have a general idea about most of it, but I cant quite put my finger on MM’s and how they influence the resistance levels of certain stocks. I’ve attempted to locate a definition for the abbreviation but continue to come up with a blank.
Can anyone help me out?
MM’s are Market Makers, which are stock brokerage firms that give quotes on buy and sell prices for stocks and commodities, making a profit on the bid/offer spread. Market makers are compensated by providing liquidity in the market.
Without market makers, in some stocks you would have a difficult time finding a buyer or a seller for an exact number of stock shares at any given time. Market makers take on risk by purchasing a large volume of shares from a seller, when they don’t have a buyer lined up yet, and vice versa.
What Is The Definition Of Penny Stocks?
