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Gold/Mining/Energy : Canadian Small Cap Stocks -- Ignore unavailable to you. Want to Upgrade?

To: axial who wrote (206)	7/19/1998 6:49:00 PM
From: diddlysquatz	Respond to of 512

Hi Jaskay. I was hoping someone else would answer your question regarding the ASE and "what is the proper way to trade stocks" as I may come across as being very pro TOM. It is a case by case situation. The ASE is like any other exchange in Canada but I think it is more a function of liquidity or rather a lack of liquidity and this is the norm with most small or microcaps today. The TOM's liquidity has improved over the last several weeks and the bid/ask spread has decreased so trying to buy and sell should be easier than it was in the past. We expect to see the company apply for a TSE listing which, while it doesn't necessarily improve price or liquidity it does tend to help increase exposure which may lead to an increase in price and volume. On the ASE, like any other stock on the major Canadian exchanges you can bid for stock or offer stock, you don't have to rely on market orders. I hope this helps. Cheers, Paul

To: axial who wrote (206)	7/19/1998 8:43:00 PM
From: Ally	Respond to of 512

Hi Jaskay, >>But here's the question: what is the proper way to trade stocks on the ASE? I have found that it's never a problem buying, but that there may be a problem selling, at a given price, because there may not be enough buyers. Then you had to take the "market price", which was substantially lower.<< Micro-cap stocks are not as liquid as the larger cap stocks. This means that there is greater volatility, and less probability of getting target buy or sell prices. Is is not just stocks on ASE, it is generally the same for all illiquid stocks in any stock exchange. Because of the lack of liquidity in small cap stocks, a buyer should be prepared to buy and hold for quite a while.