I am looking at a stock right now with low volume and float. The bid is .32 and the ask is .50. My question is why is there such a difference between the bid and ask? Over the last week it has traded anywhere between .40 and .55...
Posted by ARI on :
Anybody?
Posted by tuckermen on :
ARI, I could be wrong, but, I believe the MM's do that when they are low on shares and need to get more. The thinking may be that with such a big spread it scares away buyers or at least slows down trading. Any other opinion's or facts.
Posted by Marty on :
creating a spread like that, as tuckerman mentioned, could be for grabbing shares..."sweeping" to trigger stop losses....but what do I know... GL