kathyh, thanks. The hierarchy, in terms of trading, goes like this:
Nasdaq regular
Nasdaq small cap
****************
Bulletin Board
Pink Sheet
The regulations for both Nasdaq regular and small cap are very similar, except that Nasdaq regular, especially those in the NDX index, are far more liquid. Nasdaq small cap does have a small advantage -- you don't need an uptick on bid to short the issue provided the rules of marginability are met.
Bulletin Board is a different ball game. The Manning rule does not apply to them. They are not eligible for any ECNs (INCA, which is Instinet you referred to in your post, for instance). The company don't (at least for now, but is being phased out gradually) need to file any audited financials with the SEC. Innumerable infamous mms populate these issues.. the list goes on
Pink Sheet issues are even less regulated. Quotes are not firm, mms play with them like yoyo all day; if the Nasdaq NDX represents contemporary America, then we can view the Pink Sheet issues as the wild, wild west of a century ago, in which lawlessness is the order of the day, and most everyone shoots first and talks later. The SEC and other regulatory agencies seldom, if ever, pay attention to them as the inherent risks in playing these issues are well known. |
