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Re: Stingray post# 12489

Monday, 10/17/2011 7:27:54 PM

Monday, October 17, 2011 7:27:54 PM

Post# of 30974
Exactly, there was no buying and no liquidity. Not a good thing. The reason the SEC is enacting new rules on the problem of transparancy about it and sends out memos to the public about the greater risks of when a sub-penny stock is not trading and hasn't any volume.

For examples;

"Another risk that pertains to microcap stocks involves the low volumes of trades."
http://www.sec.gov/investor/pubs/microcapstock.htm

And stock market in general;

www.sec.gov/rules/interp/2010/33-9144.pdf[tag]Commission Guidance on Presentation of Liquidity and Capital Resources Disclosures
in Management’s Discussion and Analysis
[/tag]

All one has to do if they really don't realize the basics is to just start using some time and google and they will get a whole array of education reasonably quickly.

"Definition: Liquidity refers to how quickly and cheaply an asset can be converted into cash. Money (in the form of cash) is the most liquid asset. Assets that generally can only be sold after a long exhaustive search for a buyer are known as illiquid."