RE: SOMETHING IS ODD TAKEOVER IMO see below why4 Aug 2023 22:41
When trading stops at 4.30 a UT (uncrossing trade) is carried out, usually 5 mins later. Basically it means they balance the books for the trades on that day. Disregard the value as it isn't a single buy or sell from an investor. By balancing the books they can then calculate the correct share price and adjust it accordingly. That UT share price is the closing price.
It now becomes a bit more complicated as a UT also stands for an auction that can be carried out during the day to set the correct share price. Normally if they do a UT in the afternoon they don't do one after 4.30. so the last trade share price is taken but it doesn't mean that's the correct price. They will then do a UT at 8am the next morning to correct the price. This is where the MM's come into it. They set the price and sometimes get it wrong accidentally as they are not allowed to manipulate the price. It's virtually impossible to prove manipulation and the regulators usually only keep an eye on the top 100, where the big money is invested and most trades are done.
Is there a conflict of interest when it comes to the MM's, yes but there isn't an alternative way of doing things.
It's no difference to the banks not passing on the rate increase to savers.
Now put yourself in a MM position last Friday. You're there to make a profit and you know the big boys and girls will be selling on that negative report. The sellers will be huge and some will be counteracted with the automated buys as the share price falls. Your only action is to decrease the price instantly to below the value price as you don't want to purchase at a too higher price. That's why they crashed beyond a reasonable value. So the MM's are now sitting on a large amount of stock which they need to offload. They know the average price they had to buy these shares at. IMO their bottom line for the share price is 1.20 and they're trying their hardest to keep the share price above that figure. They have done a good job so far. Knowing investors will be purchasing shares for the dividend next week, they would have calculated what the share price needs to be at, so they can sell their stock above the average they paid for them, making a profit. I think the MM's will try and get the share price as high as they possibly can. We will see what happens.
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