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Steve,
A "wide" spread is NOT a GOOD thing for the stock. Actually, it has nothing to do with the stock at all. What it does have to do with are the Market Makers. Usually you will find wide spreads in thinly traded securities such as BB stocks and other low volume varieties. A wide spread usually, but not always, signifies a bit of MM interference. After all, it is their job to act as a "middle man".
The NASDAQ is on top of the "wide spread" issue and have implemented certain rules for MM's to follow, enabling a firmer bid/ask price and less manipulation by these greedy scum sucking....uhhhh....I mean, really bad people.
I'm sure you will get a more technical viewpoint from others on this thread, but I tend to speak rather informally.
Regards,
Steve |
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