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frogdreaming

10/31/08 7:44 PM

#79784 RE: dgplexus #79763

dgplexus, You are confusing the behavior of the OTC/Pink market with that of the 'real' market.

On the big boards a buy or sell order is presented to the market by the broker and it can be acted upon directly by the broker of a corresponding 'seller' or 'buyer' respectively. As such all transactions occur between investor/broker and their counterparts and those transactions control the 'trading' price.

On the OTC investors and their brokers do not interact directly on the board. All transactions are handled via intermediaries known as Market Makers. All buys occur when an investor buys from a Market Maker, all sell occur when an investor sells to a Market Maker.

The market makers are the only entities that perform transactions. They present their operable prices to the board (see level 2) The highest bid and the lowest ask offered by those Market Makers is presented as the bid and ask. If you do not meet their price for either transaction then you will not complete your order.

That is the way it works. If you try to 'split' the spread, they can either decide to move their price and complete your order or they can choose to ignore it because it doesn't meet their need. If an individual chooses to sell to a market maker at a price less than your offer, it will transact as a 'sell'. Since you are trying to 'buy' you are only dealing with the 'ask' price. The transactions are completely unrelated.Please try to understand how the market works, before you end up misleading those who don't understand it any better than you.

regards,
frog