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Microcap & Penny Stocks : MSHE (MSH Entertainment) -- Ignore unavailable to you. Want to Upgrade?

To: Sisofsix2 who wrote (1802)	11/28/1998 9:14:00 AM
From: Sisofsix2	Read Replies (3) \| Respond to of 2706

Correction: I'm so sorry, I was sleepy last night when I posted this: <<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.>> Should be: When (MM) abcd will buy your stock for .38, he may show an ask price of .42, but you will want to buy (in) from (MM) sdsd for .40 SIS ********************************************************************* Should have read: 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 (MM) abcd will buy your stock for .38, he may show an ask price of .42, but you will want to buy (in) from (MM) sdsd for .40. As their supply and demand changes, 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 (the MM's) is making their profits of the spread, bidding against the other MM's for their positioning. As the spread increases, there is usually a collective 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