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Re: Guardian post# 629

Tuesday, 09/18/2007 2:51:07 PM

Tuesday, September 18, 2007 2:51:07 PM

Post# of 3056
That might not be entirely true Guardian. The amount of control that market makers can exert on the OTC borders on ridiculous. Companies use the OTC because it is inexpensive and has more lenient rules with respect to reporting that allow companies more leaway in managing their start up or micro cap problems. It is very possible that there are bids that are at the ask but the mm's can demand a fit of bid to ask including exact share numbers. Many bids and asks on the OTC remain hidden as they do not conform to lot sizes. At this low price, for example, we will never see a bid for 4000 shares as it doesn't meet the minimum lot size requirement, ditto a bid for 8000 shares if the bid is an all or none bid and can't be broken up into a visible 5000 share bid and an invisible 3000 share bid. that's why the NITES of the world can so completely control the market when trading is light.

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