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Exactly what Goldman Sachs is doing right now? They are taking a nontrivial position in FB, in order to grease the wheels for others. http://www.investopedia.c
by baguasquirrel 16y ago
Exactly what Goldman Sachs is doing right now? They are taking a nontrivial position in FB, in order to grease the wheels for others.
http://www.investopedia.com/terms/m/marketmaker.asp http://www.investopedia.com/terms/m/marketmaker.asp
http://www.wordnik.com/words/marketmaker/examples http://www.wordnik.com/words/marketmaker/examples
- tptacek 16y agoGoldman is apparently maintaining a position in Facebook, not just trading them back and forth between buyers and sellers. That's, I think, what Josh is getting at. I think you may only have read the first part of that description.
- baguasquirrel 16y agoI did miss the requirement that GS would have to sell their position immediately to be a textbook moneymaker. And that does confirm Josh's frustration that there's people here with a rather casual understanding of the financial lingua. ;-) Still, my assumption was that GS thinks it can make enough from potential deals to cover whatever risk there is that FB is not worth $50 billion.
- joshu 16y agoSure, but that's not what an actual marketmaker is. They're just brokering/dealing/trading/underwriting, etc.