Elite Pharmaceuticals Inc (ELTP)

[imanjen13]

Level 2 explanation. Currently there is an offer to buy 104k shares at .032. Since no current shareholder is willing to sell at that price, the offer has not been hit. If the buyer wants to to increase his offer to buy to .033 someone might be interested. The offer to sell is currently .0359 for 51k shares. If someone accepts the offer to sell , he can buy at that price. Sometimes when the MM has more shares to sell and he may let the trade go though in the middle and the offered shares will stay the same. Market makers must show a minimum of 10k shares but they can have more to buy or sell without revealing it.

The current spread between the bid and ask is 10 % which is very high but common for thinly traded stocks. That makes day trading here very problematic since one can buy at .0359 and if you decide to sell immediately you only get .032 thus losing 10 % on the trade.

Hope this helps you understand the vagaries of the OTC and level 2 positions.