Replies to post #139595 on Wave Systems Corp. (fka WAVXQ)

[preacherman]

Elan Vital. Sure they can.

There is a System called "SOES"(small order execution system)
that was implemented in NASDAQ that all Bids and Ask go into
a database that allows everyone the opportunity for their order to be filled on a first come, first served basis.

BUT

The ECN or the MM only has to fill the number of shares they
have advertised. This is a gimmick that is used to disguise
the true number of shares that they might have to offer.

By doing this they can be selective in quantity they allow to
be purchased or sold. If you want to buy 1,000 shares and
the ECN or Market Maker only has posted 100 for sale then
your broker only posts 100 purchased and 900 left. The ECN
or MM has to repost the 100 and your broker has to send the
900 back and again 100 is filled and 800 is left. All this
takes time and your limit order may not be filled because
the ASK may be bumped up .01 cent.

They can also show 100 and fill 25,000 shares if they wish.

The BID is what an ECN or MM wants to buy your shares for,
and if they are only showing 100 shares then it drops down to the next lower Bidder, thereby letting the ECN or MM on the ASK to lower their price.

This is how it can be done and I have watched WAVX about 10 years and I have questioned the activity numerous times even to the SEC and NASDAQ.