Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : PKGP (Packaging Plus) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Casey who wrote (1151)	5/12/1998 4:02:00 PM
From: 9ball	Read Replies (4) \| Respond to of 4783

Anyone feel like speculating what happened today? Andrew

To: Steve Casey who wrote (1151)	5/12/1998 4:09:00 PM
From: TraderGreg	Respond to of 4783

If an limit order is submitted which is better than the current bid or ask, that limit order will set the new bid or ask for the stock (subject to some restrictions). For example, if someone would like to buy shares of CSLMF ($1.50 bid, $1.75 ask) after it becomes subject to the new rule but didn't like the $0.25 spread, that person would be able to submit a limit order at $1.625, and that would become the new bid price. I think you're missing a key point. The bid and ask are what MMs are willing to buy and sell at, not us individual investors. Now, unless you're stationed at a broker's office with his capabilities at your disposal, you offering 1 5/8 will not raise the bid. Why? Because the lowest ask is still $1.75. Now, if enough people do what you did and no one appears to buy at 1.75, then the ask might get lowered. The spread is the vigorish. In general, you buy at the ask and sell at the bid. Unless you're an MM or SOES trader, it's the premium we pay to have fun with stocks. Occasionally, with wide spreads, we can buy a bit below the ask and sell a bit above the bid. But usually, when we 're able to do that it means the stock is about to fall or rise respectively. In addition, notwithstanding what the new rules say, I have placed limit buys in at price above the current market ask and not caused the ask to go up. This has happened enough times to lead me to conclude that Market orders are filled before limit orders, even when those limit orders are better than the market,i.e., limit buys higher than the ask or limit sells lower than the bid. TG