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Microcap & Penny Stocks : HGRM--Any Followers? -- Ignore unavailable to you. Want to Upgrade?

To: Ted M who wrote (1919)	2/18/1999 10:29:00 AM
From: Jim Burnham	Read Replies (1) \| Respond to of 3576

If I get any of this wrong, please correct me. Keep your eye on the ask size. I believe it was 500 shares. If you put in a market order at the ask size or lower, the exchange automatically fills the order without any input from the MMs. If you put in an order for more than the ask size, then the MMs get to decide if they want it. I'm not sure what happens with a limit order at the ask size or lower. My guess is that the MMs get to decide on it. Note: I am focusing on what happens automatically and what doesn't happen automatically. I've heard people claim that what happened to you is against the rules. I don't know if that is true or not. Jim

To: Ted M who wrote (1919)	2/18/1999 11:12:00 AM
From: Eric Fader	Read Replies (1) \| Respond to of 3576

Ted - My guess is that there may have been another order ahead of yours, and/or your broker or his trader was unable to reach the MM who was offering at 3-7/8. My understanding is that all OTC-BB orders must be called in on the phone to the MM, unless your account is with a brokerage that is willing to buy and sell small amounts of stock to and from "inventory" and settle up later (maybe days, weeks or months later). In this case, my assumption is that there was a large sell order (maybe even a fake one from a short-seller or MM who is still short from 8, like "sell 40,000 shares at 4-1/8 or better, all or none") before the open that chased away the MMs. The MMs generally want to trade the stock in small amounts, but don't want to get stuck buying the first piece of the order at 4.25 when the seller is going to have to keep selling pieces all the way down into the mid-3's. -Eric