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Non-Tech : The future of the OTCBB and Pink Sheets -- Ignore unavailable to you. Want to Upgrade?


To: The Perfect Hedge who wrote (10)3/29/1999 3:34:00 PM
From: Chris Block  Read Replies (1) | Respond to of 28
 
A wide spread shows a lack of liquidity and/or a lack of interest by market makers. There could actually be a trading interest inside the spread by individual customers but it is at the the market maker's discretion to show it. Remember a market maker makes more money by having a wider spread. He has to balance a wide profitable spread against his ability to execute trades. It is in the MM best interest to keep a spread wide, remain at the inside quote, and receive all of the order flow. He can still trade between the spread without changing his market to tighten it.

The SBX nanocap system hopes to fill this void by allowing individuals to trade between the spread and show the true spread by displaying their orders over the Internet.

What stock are you referring to?