Consider the following limit order book of a specialist. The last trade in the stock occurred at a price of 35.30. Assume this represents the entire available market for this security. Specialists (market makers) willing to buy at the BID or SELL at the asking prices, respectively: BID SHARES ASK SHARES 35.26 1000 35.34 1000 35.22 1000 35.38 1000 35.15 500 35.45 3000 35.08 700 35.52 6000 34.94 2000 35.66 10000 If you were a market maker in this stock, would you want to increase or decrease your inventory of this stock?

Keep inventory about the same

Increase Inventory

Decrease inventory