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Microcap & Penny Stocks : Bid.com International (BIDS) -- Ignore unavailable to you. Want to Upgrade?

To: donkeyman who wrote (5064)	1/9/1999 4:26:00 PM
From: the Chief	Read Replies (2) \| Respond to of 37507

This is the job of the exchanges not us. They prevent imbalances between exchanges to prevent brokerages buying a ton of XYZZF on Nasdaq, then trying to sell it as BII on TSE (read previous post) What about the value of the 20 million shares outside the USA.?? How could the value in US Dollars stay the same for the other 20 million BID.COM shares.?? how does Newbridge NYSE and Newbridge TSE remain the same....magic!!<ggg> the Chief

To: donkeyman who wrote (5064)	1/9/1999 4:55:00 PM
From: Chad Barrett	Read Replies (1) \| Respond to of 37507

donkeyman, When BII trades on both the Nasdaq and TSE the share prices will stay in synch "because the markets are effecient"! Any arbitrage that may occur will immediately be corrected by the market. If the US share price runs up to $10, the Cdn price will move up to approx. $15 to reflect that... how? Quite simply, investors will buy the shares on whatever exchange is the cheapest place to buy the shares, and they will sell them on whatever exchange will give them the greatest return... this keeps the markets in balance! If the share price on Nasdaq went to $10US, but the TSE share price stayed at $10 Cdn, then people could make money "for free" buy simply buying BII on the TSE and selling it on Nasdaq.... the theory of "effecient markets" states that this situation will never happen, and if it does it will be immediately corrected "because the markets are effecient" (ie. somebody will noticed the discrepency and make trades that will bring the markets back into balance) This isn't rocket science donkeyman! It's all quite logical.... Also, the Chief seems to be under the impression that BII will simply transfer the US held shares over to the Nasdaq. I was under the impression that BII might do a share offering through a US brokerage to create the Nasdaq shares (they would do this if they wanted to raise some working capital at the same time they moved to Nasdaq). I believe either process is possible.... but I think I like the Chief's way better... (no more shares outstanding... and a smaller TSE float) Chad