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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading: -- Ignore unavailable to you. Want to Upgrade?

To: Mike McFarland who wrote (509)	1/25/1998 4:02:00 PM
From: Arthur Tang	Read Replies (1) \| Respond to of 769

Thank you, Mike. Less than one dollar stock, in many cases, you have to pay 2 cents more per share commission, in addition to the full commission. Except internet brokers, who do not use market makers but their own clearing house. The truth of the matter is that market makers use the spread to pay for the stock they have to buy. Most of the under one dollar stocks are of great risk, even for market makers. If you want the stock, buy at market order; that helps your stock to go up in price. Trying to push the stock down, makes your ownership of the stock more risky. Cheap stocks usually are thinly traded.