Real American Capital Corp (RLAB)

[LetHerRun]

I've been talking to Jeff Brommer about the new tick rule. Apparently he is annoyed about it as we are. He sent me this comment he sent to the pink sheets and the response he got back...



Here is the original comment to the pink sheets from Jeff:

To Whom it May Concern:

I am wholeheartedly against this new quote rule! While it may discourage day traders (which is a good thing), it also makes it tough on companies to attract new investors if your price has a wide gap in between it such as .0009 bid by .0015 ask. Who in the world wants to take that kind of hit when they first invest? I certainly wouldn't. While having a stock trade with 3 zeroes in front of it seems ludicrous, it is very unfair to the Company that has such a wide gap, thereby dissuading investors.

Jeffrey A. Brommer
Investments 101 Ltd.





And here is their response:

Thank you for your feedback.

It seems the spreads are largest at the breakpoints (particularly around .001) and that a bid at .0009 and under can (conceivably) have a spread of .0001 as it does today. The percentages drop significantly as the bid goes from .001 to .003 and higher assuming a minimum increment of .0005.

We?ll have to look at the data to see how many securities this will affect.

Also, the increments only affect the quotes ? you can still negotiate and execute a trade at a better price.

Tim Ryan
Pink Sheets
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