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To: Captain Jack who wrote (3424)12/2/1998 2:56:00 PM
From: Mike Sawyer  Read Replies (1) | Respond to of 5847
 
For those that are wondering about those tiny 100 share trades...here's what I was told as near as I can remember. J Saf might be able to expand on this as I think he has some connections and my information is coming from one conversation several years ago with a broker with a MM firm.

What I was told is that when a new market maker moves in or when a market maker that has not been active in a stock for a certain time, wants to begin making a market they usually make a minimum trade of 100 shares to open their position. Or something like that...I don't remember exactly how it works.

I might get a good laugh from the MM's on that explanation but it's the best I can offer in this confusing world of OTC stocks.

Cheers!

Mike



To: Captain Jack who wrote (3424)12/2/1998 3:39:00 PM
From: Ron Harvey  Respond to of 5847
 
<<Doesn't make any sense why someone would buy or sell that many shares.>>

A lot of the trades you see are dealer to dealer transactions, not retail buyers or sellers. This also means that on any given day the trading volume is much less than shown.