Secure Point Technologies Inc (fka IMSCQ)

[Itza-Sherbet]

Really? THE BROKER-DEALER IN THE OVER-THE-COUNTER MARKET

There are three basic classifications of broker-dealers: wholesale, retail, and the integrated firms.
Wholesale dealers stand ready to buy or sell for their own account in transactions with other broker-dealers, who may be acting for themselves or for public customers. Retail firms execute transactions with or for public customers by dealing with wholesale dealers. Integrated firms combine both wholesale
and retail activities. That is, they buy and sell both for their own account and with the public.
Markets for securities are made by and between wholesale broker-dealers through communication of quotations representing prices at which they wish to deal for their own account. These market makers react to incoming orders by purchasing and selling through their own accounts. The market makers' purchases and sales may be to other broker-dealers acting for themselves or for public customers. In this way the market makers function analogously to an exchange by providing a place for the collection of buy and sell orders. However, in the OTC market the orders are not matched and executed. Rather, the market maker buys and sells for his own account, depending on the spread between the bid and asked prices to supply him his profit.

REGULATION OF OVER-THE-COUNTER MARKUPS:
A REAPPRAISAL OF PRESENT POLICY
by Robert J. Eadington
http://digitalcommons.lmu.edu/cgi/viewcontent.cgi?article=1039&context=llr