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 : MSHE (MSH Entertainment) -- Ignore unavailable to you. Want to Upgrade?

To: BOJO who wrote (1800)	11/27/1998 8:40:00 PM
From: recycle	Respond to of 2706

Bob, What you call market price is nothing more then last trade. In other words the last trade that was made today was a sell. Had the last trade been a buy, then what you call market price would have been .40. The closer the spread, the better off everyone is. Someone else might want to go in to more detail, but that's it in a nut shell. Hope it helps. recycle

To: BOJO who wrote (1800)	11/28/1998 2:44:00 AM
From: Sisofsix2	Read Replies (1) \| Respond to of 2706

Hi Bob; I'll add to Recycle's explanation here. In Nasdaq, there may be several Market Makers making a market for a particular stock. In your example of .38 X .40, this could be the scenario: BID abcd .38 llll .37 wwww .37 ASK sdsd .40 jnjn .41 abcd .42 The .38 X .40 shows the best bid/ask for the Market makers on that particular stock. When abcd sells his stock for .38, he may show an ask price of .42, but why buy from him is you can buy from sdsd for .40. As their supply and demand change, so does the price they are willing to buy and sell their stock position. When the bid and ask are close, all they care about is making their profits of the spread, bidding against the other MM's for their positioning. As the spread increases, there is usually a collect anticipation that the stock they are holding is likely to move up and they will be glad to buy back your stock at a low price and sell it to another investor for the higher price. Hope this helps! SIS