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Non-Tech : Web Street Securities (WEBS) -- Ignore unavailable to you. Want to Upgrade?

To: Noor who wrote (320)	4/25/1998 1:59:00 PM
From: Mike	Read Replies (1) \| Respond to of 1339

Noor, I think what James is saying is that the penny stocks are more likely to be subject to their "Price Var Excessive" rule. The idea is that you can't enter an order to sell a stock for $31.00 when it closed the previous day at $20.00, because this is more than a 50% increase ($31 > $20 + $10) so it must be an error. Right? Now apply this to penny stocks. A stock closed the previous day at $0.04 and you want to enter an order to sell at $0.06. No can do. This is an especially problematic for penny stocks because they are very speculative and can rise and fall very quickly depending on news, earnings, etc. So, it's not very difficult to find a penny stock with more than a 50% increase from the previous day. Now let say your holding a $20.00 stock and you wake up one morning and CNN has pictures of the CEO being led off to the pokey for securities fraud. Your stock tanks and you want to enter an order to sell so you can salvage whatever is left of your money. Sorry, "price var excessive". Mike