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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: Jack Colton who wrote (46773)	7/23/1999 12:27:00 AM
From: Midnightsun	Read Replies (1) \| Respond to of 50264

"I'm like the Chevy Chase character from Caddy Shack. <vbg> Or was it Rodney Dangerfield?" Or was it the gopher?

To: Jack Colton who wrote (46773)	7/23/1999 1:31:00 AM
From: Dolfan	Respond to of 50264

Hello Jack! I may be coming up in a couple weeks. I will definitely let you know! For those interested this is a nice FAQ on trading pink sheets that I found. A company whose shares are traded on the so-called "pink sheets" is commonly one that does not meet the minimal criteria for capitalization and number of shareholders that are required by the NASDAQ and OTC and most exchanges to be listed there. The "pink sheet" designation is a holdover from the days when the quotes for these stocks were printed on pink paper. "Pink Sheet" stocks have both advantages and disadvantages. Disadvantages: 1.Thinly traded. Can make it tough (and expensive) to buy or sell shares. 2.Bid/Ask spreads tend to be pretty steep. So if you bought today the stock might have to go up 40-80% before you'd make money. 3.Market makers may be limited. Much discussion has taken place in this group about the effect of a limited number of market makers on thinly traded stocks. (They are the ones who are really going to profit). 4.Can be tough to follow. Very little coverage by analysts and papers. Advantages: 1.Normally low priced. Buying a few hundred share shouldn't cost a lot. 2.Many companies list in the "Pink Sheets" as a first step to getting listed on the National Market. This alone can result in some price appreciation, as it may attract buyers that were previously wary. In other words, there are plenty of risks for the possible reward, but aren't there always?