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Microcap & Penny Stocks : ADOT - BIOMODA: Profitable Technology with Purpose

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To: Fritz who wrote (3298)2/18/1999 3:32:00 PM
From: Jeff Grossman  Read Replies (2) of 4650
 
It's not a myth. The double counting of volume for OTCBB stocks refers to the fact that volume for buys and sells are counted separately. If you sell your stock to a market maker and he sells your stock to someone else, you see two trades reported. On the NYSE, if you sell your stock to another investor, there is only one trade.

The double counting doesn't necessarily mean that you will see two trades of the same size. For example, a market maker can buy 9,000 shares via three trades of 3,000 and then sell those 9,000 shares in two trades of 4,500 shares. And he doesn't have to sell the same amount that he buys in one day. It depends on what he wants to do with his inventory.

You can also get triple reporting of volume if more than one market maker is involved in a trade.

Jeff
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