B-

I see Dischino posted earlier the fact that there is a short interest in EDIG. This interest does not get established all in one day and closed by the end of the same day. (The report is updated twice monthly, once around the 1st ("A") and the other ("B") around the 15th.)

On the date of record (1st or 15th) many times there haven't been close to that number of shares traded. So MMs WILL short a stock in order to prevent a stock from advancing too quickly and maintain an open short position until they can cover when 'interest' dies off..... and investors get tired of watching their investment 'drop' on lower volume. This leads to selling so they will cover. How many real investors have recommended EDIG in the past few weeks as the price went up, and do you think that if anyone bought on a personal recommendation, they are questioning both the recommendation AND the 'personal relationship' that did recommend EDIG?

(I make sure to tell everyone EDIG is very volitile, plan to see its price drop by half (over weeks at times), but look at all the devices you see with FLASH and then decide whether you want to hold or fold.)

Sometimes (and the legality of this is in doubt) MMs will short a stock knowing full well a significant amount of shares will be 'printed' or sold into the market on a certain date... giving them the chance to cover as supply outstrips demand.

I don't recall saying that they do so on 'behalf of a client'... but MMs will short a stock at all prices and maintain that short position in order to keep a stock from rising too rapidly. They are allowed to do this, however, when naked shorting occurs or they have inside information regarding future availability, (and use that to their advantage) then you find manipulation... and the lines of legal / not legal getting crossed.