Replies to post #66365 on Lightwave Logic Inc (LWLG)

[Bruinfan4ever]

"When a stock gets uplisted, there’s a list of likely institutions that wanted to buy the stock before, but were unable or willing to buy it from a lower-level exchange. OTC stocks don’t have the liquidity people, like hedge fund executives, want to see.

Mutual funds and pension funds also avoid lower-level exchanges for the same reason.

By that, I mean it’s harder for a hedge fund to place an order for millions of shares at a price it wants, and it’s even harder to get out of a position because there just aren’t enough buyers. Fortunately for us, we don’t have that problem when buying OTC stocks because we have smaller trades that can get filled."

[bar1080]

A few years ago I decided to actually research whether mutual funds and such were barred from owning pennies which is something junk stock pumpers will say to explain why their ".0001 Canadian diamond mining issue" has ZERO institutional ownership (which should be a huge red flag).

I still own a few mutual funds from decades ago and I happened to receive the annual report from one that day. So I put on my glasses, grabbed a magnifier and pored thru the entire thing. On the section about permissible and impermissible investments, there was nothing excluding low priced stocks or "penny stocks."

Later I used SEC.gov to read thru similar reports from other major mutual funds. As I recall, some DID exclude penny stocks while others emphasized that they could buy just about ANYTHING.

Of course, almost none of them buy junk like LWLG. The reason is simple: Being the manager of a huge mutual fund or ETF is about the cushiest job on earth. No one wants to gets fired from that job because they bought a zero revenue, zero profit, zero product penny stock that has more red flags than an old May Day Parade in Moscow.