RCC Holdings Corp fka RCCH

[frogdreaming]

They weren't buying from the public.

Please pardon my ignorance.....If a MM makes his /her monies from the spread and, as you claim it is just good business. How were some buying at .00005?

MMs play more than one role. They maintain the public market via the bid and ask transactions. These are limited by the SEC to .0001 increments. They make their profit from the spread. They also act as conduits for shares entering the market for the first time. All new shares have to enter the market via MMs as they are the only entities that actually transact trades on the pink sheets. You either buy shares from MMs or you sell shares to MMs. That is all that ever happens. So if a company wants to distribute more shares into the market he has to do it through an MM.

Gendarme for instance, after purchasing billions of discounted shares from Newton had to sell them into the market through an MM selling at .0001. How the profit was shared between the two was a private deal between them.