Big Screen Entertainment Group Inc (BSEG)

[DawgTrading]

I've seen a few 4999 trades go through over the years and I found it weird why 1 off the 5k lot. Saw one today come through BSEG at 9:52am so thought about it again.

I researched it a little bit online on some forum posts on iHub and elsewhere and it could be someone who has a broker with a flat rate commission under 5k shares traded, and $0.01 per share over 5000.

For a penny stock purchasing a large amount of shares could make the commissions a lot more expensive than a flat rate on shares over multiple trades.

Some math:
Lets say broker commission of $6.95 per trade under 5,000 shares, and $0.01 per share if the shares are 5000 or more in the trade.

250,000 shares wanted.
If in trades under 5,000
250,000 / 4999 = approximately 50 trades
50 trades * $6.95 commission = $347.50 total commission for all 50 trades.

If purchased as a single block
250,000 * $0.01 = $2,500.00 total commission for the single trade.

Makes sense to me why that would be.