Replies to post #3548 on Grey (or Expert) to Pink

[BillG2436]

Do companies that have been placed on the Expert Market due to not being current still have a chance to become current?

[creede]

Thanks for the update.

I have been actively calling Broker Dealers on the OTC List. Have probably called a half dozen of them thus far.

No luck finding a means to buy or sell Grey or Expert stocks.

I am also yet to find a single broker who can tell me a legal reason why the "Restricted Securites List" exists anyways.

Only one of the six actually had that list.

I did discover, however, a really good theory from one of the brokers (who happened to be the owner of said brokerage).

It seems the clearing houses (every broker needs a clearing house to settle their trades) charge the brokers a fee for each trade that is settled. So that's a cost that penny traders drive up because we place a whole lot of trades (especially compared to the blue chippers).

The Discount Brokers (like TD, Schwab, Etrade, Etc) charge a daily fee for their order flow (which Market Maker gets the order). Rumor has it that Schwab gets $100,000 per day for their order flow.

So here's the thing....

The more trades they have per day the less they get to keep of that $100,000.

Very interesting.

And if you think about it... now we know why that mysterious "Pattern Day Trader" rule emerged to - once again - "protect us from ourselves".

Bullshib!

Penny Traders and Pattern Day Traders greatly increase clearing costs.

Are these discount brokers protecting their clients - or their profits?

You tell me.