Bid /Ask Spreads - Market Manipulation Message Board

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Non-Tech : Bid /Ask Spreads - Market Manipulation

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To: Sajjad who wrote (204)	11/13/1996 7:57:00 PM
From: ----------	of 308

Sajjad: Trying to trade an OTC stock for an 1/8th etc, on a minute by minute basis, is indeed an exercise in futility. (While you know the following, I will say it for the others following the thread)... UNlike the NYSE where buyer/seller EXCHANGE stock at the same price, the OTC market relies on marketmakers who must buy from the public and sell to the public. They are providing the liquidity in OTC stocks that prevents many of them from trading "by appointment only." For doing this, they do indeed want the 1/8 1/4 etc spread in the bid/ask. I would urge any big trader who honestly thinks MM's have a huge advantage to become one. It is not a closed clique. Anyone with $250,000.00 in Net capital can set-up a firm and make a market in an OTC stock. I have seen more than one firm who got into this "free lunch" game end up with their lunch shoved in an orifice not normally associated with eating. I mean you NO disrespect personally, Sajjad, I just do not believe there is that much bias against an investor. Regards, Doug

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