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Microcap & Penny Stocks : THNS - Technest Holdings (Prev. FNTN)
THNS 0.00Jun 7 5:00 PM EST

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To: TsioKawe who wrote (5904)9/15/1998 7:59:00 PM
From: Radim Parchansky  Read Replies (1) of 15313
 
MM's make money on spreads and number of trades or commissions. If the volume is low then all what they have is the spread, so they try to widen it. They have to directions up & down. In the absence of news their chances are higher for the down side and by lowering the bids they win two ways - one the spread is larger and second they make investors believe that something is wrong. And how do they justify lowering the bid? With every trade no matter how small they push the bid down.
This is just one possible scenario but explains tendency to move in certain direction despite of different trade sizes.

Radim
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