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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?


To: Densiebj who wrote (51949)2/20/2000 7:51:00 PM
From: Anthony@Pacific  Read Replies (1) | Respond to of 122087
 
The spread is so wide because ....ther is very little stock outstanding and so buyers force market nakers to offer stock higher than thye can buy it at...to compensate for volatility and the major reason is that these mkt makers arent sitting on a huge inventory and must make very short term naked short sales .... with the hoipes that natural sellers will feed the ever turning shareholder base to new shareholders....

BUt teh most drasticcauser of the spreads widening is the reduction of the 1000 share minimum market makers are liable for from 1000 down to 100 shares,...and the eliomination of the excess spread...which took place ..after the SEC took action agaisnt teh NASD for collusion in keeping spreads artifiucially high..Its one big joke..