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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...
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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.
-------------------- It's easy to sit there and say you'd like to have more money. And I guess that's what I like about it. It's easy. Just sitting there, rocking back and forth, wanting that money. --Jack Handy Deep Thoughts
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creating a spread like that, as tuckerman mentioned, could be for grabbing shares..."sweeping" to trigger stop losses....but what do I know... GL
-------------------- Marty When I was born, I was granted a visitors pass to earth. I will enjoy everyday until it has expired. You should too ;)
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