The Advocate
Posted on August 1, 2012
by TheAdvocate
In mini “flash crash” fashion, Knight Capital Group, Inc. (Symbol: KCG) plummeted multiple percentage points in a matter of seconds, with bid and ask lots swinging at wild levels, and with market participants wondering just what the hell is going on.
Knight Capital is a market maker, which means that it trades and sets the market for various securities, such as penny stocks. For penny stocks to be traded, someone has to be the market maker, and Knight Capital is one of the big ones, providing liquidity to that market.
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