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Microcap & Penny Stocks : INFE ... Infocall another Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: HRH who wrote (4776)	6/11/1998 12:26:00 PM
From: GT	Read Replies (3) \| Respond to of 10343

My way of thinking about a spread is that the mm's widen it to slow or halt volume and the most recent direction. For example - this am when mtei was being bought, and the price was rising, the mm's were able to put a little hesitation into the minds of anyone watching and wondering if it was too late to get in by simply lowering the ask a notch. Conversely, if you see a stock with a huge spread you probably would be turned off and not buy at the ask because if you turned around to sell right away - you'd loose the spread - sort of like buying a new car and then trying to sell it for what you bought it for - never going to happen. However - if the spread suddenly narrows, you won't feel to bad about buying at the ask - cause you won't loose that much if you then sell. This is how changing the spread influences demand and thus volume.