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Re: pennyjunkie post# 13213

Tuesday, 05/15/2007 12:15:35 PM

Tuesday, May 15, 2007 12:15:35 PM

Post# of 76394
This was from another board fromn another poster on why a broker will restrict online trading in a stock:

Apparently they're using a loophole in everyone's client agreement to restrict online trading. And since they offer to still trade with a broker (over the phone), they're not completely shutting down trading unilaterally, where they might get in trouble with regulators. But killing online trading essentially cuts down 90% of the volume from that broker. So they can end up shorting these things to fill orders, then kill trading by restricting online trading, and cover when the stock drops due to a lack of buying volume which was created by the online trading restriction.