3 ms·
> Suffice it to say, I do understand a bit about markets > so I'm assuming this is 'market makers' that are selling off shares and pushing the price down. No.
by tanzam75 13y ago
> Suffice it to say, I do understand a bit about markets
> so I'm assuming this is 'market makers' that are selling off shares and pushing the price down.
No. That is not what a "market maker" does.
A market maker does not take directional positions on a stock -- either long or short. Their goal is to make money on the bid-ask spread, and they try to maintain a net-zero position, so far as is practical.
The purpose of a market maker is to provide liquidity, by ensuring a sufficient tight bid-ask spread. By definition, this means that they are buying when others are selling, and selling when others are buying. Thus, if Google shares are going down due to selling pressure, then market makers would be buying.