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OkImLost

01/27/11 9:59 PM

#9098 RE: jojobeans #9096

I doubt it Jojo.

Especially at this level, IMHO it would hardly be worth it between the margin and commissions and that's if you could find a broker who would even handle the transaction at this level. While there are those who specialize in OTCBB, usually .25 is their cut off but even then it would need to be a security that has high daily volumes and therefore market liquidity. Most traditional brokers have cutoffs at the $1 or $5 and as many have told me, are now only choosing to do transactions from securities that both generate revenue for their firm and at the same time keep the regulators from knocking on their doors.

Now what you could be seeing is a situation where orders are recognized by an MM or even a broker later to find in daily clearing that there is insufficient shares in inventory (possibly due to a slow settlement from previous transactions, or a new broker handling the security or even a new MM coming online with the security)to accomodate sudden rising volumes. Not unusual with smaller low volume securities with sudden fluctuations, in which case the firm may reach out to another MM or pull back from a broker. Now these limited transactions having no place to being accounted for may show up on the short side of the ledger for reporting purposes. Hope that Helps.

GLnGT
-OK