GDT Tek Inc. (fka GDTK)

[seattletechguy]

b92: It's very simple...

.0001 is the BID. .0002 is the ASK.

The BID is the highest price at which a Market Maker (MM) is offering to buy the stock.

The ASK is the lowest price at which a MM is offering to sell the stock.

(The difference between the BID and the ASK is called the 'spread'.)

Generally, transactions at the BID are sells by an investor (and buys by the MM), while transactions at the ASK are buys by an investor (and sells by the MM).

MMs make their money on the spread (as opposed to brokers which make their money on commissions). So for a MM to make money by selling you stock at .0001, he would have to have paid less than that (or expect to pay less than that to cover if he's going short to sell to you). Since the BID can't go below .0001, no MM can make money selling to you at that price, although a R/S will let the MMs short with impunity, since .0001 will become (say) .10 (assuming a 1-for-1000 reverse), and then can go lower.

I'm really not trying to be rude here, but you should know this stuff before you go investing in penny-stock land.