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5cap

03/29/11 12:52 AM

#29911 RE: ztect #29908

Maybe you could enlighten me on what liquidity issue you see. For instance let's say before the split the stock is trading 200k shares per day, at an average of $.08, or $16,000. A spread of .002 to .004 would be typical, but sometimes more, sometimes less. After the split it would trade about 2000 shares a day at $8, or $16,000. The corresponding spread would be, 0.2 to 0.4. Now use a stock screener to search the Nasdaq for similar stocks (like CNYD for instance), and you will realize the spreads are this wide or even tighter..meaning once this is on the exchange that liquidity would get better, not worse.