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Replies to #2615 on The Cork Board

the cork

02/18/11 7:04 PM

#2616 RE: b4atf #2615

I think what it means is the new rules now apply to non reporting stocks aka OTC and pinks, they have to declare that that's what they are doing (as opposed to never having to account to anybody) and they can't artificially have unfair bid/ask ratios in order to unfairly keep the price down.

I'll be looking for more info on this too, as I'm not completely clear on all the meanings.

properlynumb

02/19/11 8:29 AM

#2619 RE: b4atf #2615

In my simple non-leagle mind:
Market Makers are allowed to compleet an order;
Mr A sells 90 shares of XXX
Mr B buys 100 sh
MM makes the deal and shorts 10 sh.
Liquidity is achived.
Within 3 days MM buys 10 sh at a lower price and makes money for his company.
The universe in in balance.
Of course MM's like to sell a couple million and drop the price to cover.
Making their company bucks and forcing sh price down.
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The new law, as stated, forces MM's to reveil the bid and ask as simmilar amounts (like the 90 sh sold/100 sh bought)
It's an attempt at transprancy.