Replies to post #64178 on PharmaCyte Biotech Inc (PMCB)

[Triple9]

An ETF is very interesting for $PMCB because a lot of people have brokers and trading platforms that do not allow the trading of OTC stocks. Sure, they may have a trading account with some funds in it, but their IRA and 401(k)s are huge by comparison and in many cases do not allow OTC stock purchases or the purchase of any stocks less than $2. The MMJ ETF gives them a safe way to get exposure to PMCB.

Second, the very act of creating an ETF requires the issuing company to purchase shares of the constituent stocks and hold them in trust. Most ETFs actually allow you to pay a fee and convert the ETF to the underlying stocks (not much reason to do this unless you do arbitrage), but as you can imagine the trusts have to have the shares available to do these periodic conversions.

Third, all small ETFs are arbitraged by Hedge Fund's program trading systems. Arbitrage = much higher trading volume. (Google High Frequency Trading)

Fourth, exposure. When an investor hears about this exciting, new MMJ ETF they will take a look at the component stocks and they will see PMCB. Free advertising, which is already happening: http://nypost.com/2017/02/17/medical-marijuana-has-gone-corporate/