SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Auric Goldfinger's Short List
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: on parole who wrote (210)9/14/1998 9:05:00 AM
From: Cosmo Daisey  Read Replies (1) of 19428
 
Realist,
OTCBB: The OTC BB system is a group of dealers that have a computer network. This is the present day "Pink Sheets" The dealers can sign on to make a market in a stock and usually will hold a small position in the stock themselves. Each dealer shows the volume in the trade, if you buy 50,000 shares through your broker he gets the stock from a dealer who may get it from another dealer and both show the trade, even the interdealer trades are shown, thus 100,000 shares hit the tape. When there is a demand on the stock the dealers sell their inventory and when its gone they sell short, naked shorting is allowed by mm's. If the demand is strong they continue shorting until the demand lessens and they can pull the price back to cover the shorts. A small pull back is all they need because they keep selling short higher and their average price may be just below the current selling price but when legimitate sell orders hit the market they pull the stock back quickly to gain as much as they can. When demand is high the weekly trade volume may be three times as much as the float due to shorting. Most mm's usually don't even know what business the stocks they trade are in, they don't care they just make a market in the stock. The stock is not the company and the company is not the stock. Many time a company will have a connection with a MM and the MM will run the price up while management adds shares to the float. Pump and dump. Many BB companies are just stock operations with very little business and the income is derived from selling more stock. NIAR is a company like this. The management doesn't draw a salary but sells more stock each year (about $1,000,000). The stock is hyped while shares are added and then it falls back quickly. When the float is too high to control the company will reverse split, change their name and sell more stock beginning the process once again. The BB system is worldwide and the MM can be from anywhere and outside the juristiction of the SEC. The BB is the largest volume market in the world. Toys are Us started on the BB and so did a lot of other companies but its hard to separate the good ones from the crap that Dr. Seuss mentioned. Even knowing the company doesn't help because as I said befor, the company isn't the stock.
cdaiseyPhD@light-the-cigar.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News