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Home Theater Joe

09/28/17 7:25 PM

#118266 RE: fenian32 #118265

We’ve had T-Trades nearly everyday for a month and there was very little dilution and NOTHING in the last couple weeks per the 10K just reported yesterday. EXPLAIN WHERE THIS DILUTION CAME FROM PLEASE?
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LucasDavid

09/28/17 7:28 PM

#118270 RE: fenian32 #118265

People have a mis conception of t-trades. That they are somehow diluting when in fact it is MM manipulation


there are a few poorly publicized uses for a T Trade. The most important factor here is that the only requirement of market makers by FINRA is that they must report all trades in a day. They are not required to do so when the actual trade occurs.

To avoid creating “an unbalanced market”, market makers often do not report certain trades during the day to the public and then use a T Trade not to “scare” investors into thinking a market for that stock is going in one direction or the other at the spurring of one large investor.

If a market maker wants to accumulate a large amount of a stock in one trading day, that market maker may actually not report any of the trades that occurred until the trading day has ended so as not to alert the market to the collection. This practice is completely legal under the FINRA rules of the OTC Markets so long as the trade is reported at the end of the day.

To execute a Market on Close” order, a market maker may have an order to purchase the stock at a certain price at the end of the trading day. This is the most unlikely scenario because it needs to be assured that someone selling the stock and someone buying that stock are agreeing upon a price. Simply put, this is more likely with insider buying and selling.

The T Trade that the public sees is nothing more than one or all of the above scenarios. The T Trade reported at the end of the day can be from one market maker or many involved market makers. It can be a single purchase price but is usually an average of all of the previously unreported purchases from that business day.

https://incrediblepennystocks.wordpress.com/2013/06/25/incredible-penny-stocks-what-is-a-form-t-trade/amp/
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absintheminded90210

09/28/17 8:28 PM

#118306 RE: fenian32 #118265

Not at all. 30 million shares ‘dumped on the market’ with today’s 171mil volume would have looked like a big spike down. What we saw was 30mil shares purposefully sold in a very shareholder friendly way.