Replies to post #7551 on Mast Therapeutics, Inc. (MSTX)

[Ecomike]

I think I mentioned this here before, but maybe not. I got into a deep discussion with a broker at Fidelity (my broker) recently on the problem with the bid and ask prices. Basically it seems the bid and ask prices are only the bid and ask for unconditional orders, and are mostly MM bids and asks based on bids and asks they have orders for.

But let me make this part clear, when people place a conditional bid or ask of any kind, say an all or none order, or a conditional trip to buy or sell on a condition, for a fixed number of shares, or a market sell or buy immediately order, those orders never show up in the bid and asks even on level II according to my broker, and we spent an hour on the phone discussing and researching the exact details and rules on that. So that may explain the odd stuff we see at times versus the bid/ask numbers. For instance when an MM buys or sells for his own account, or fills a price limit buy or sell order when he has the right number of shares to fill that conditional order, then it may post as a sale suddenly at above or below the bid or ask. I got into the discussion one day when orders were filled at less than or equal to my bid, and the price rallied without my order getting filled that day. But my order was conditional.