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Few buyers buy stock. They buy right to own stock from their brokerage firm. Their right is reflected on their monthly brokerage account statement. Essentially, their right is an option issued by brokerage firm to client. It qualifies client for share price appreciation, if stock moves up. Of course, to benefit from share price appreciation, shareholder must sell their stock (option). Few public shareholders sell in an upward moving Market.
Unless buyer becomes a registered shareholder of company, buyer doesn't own stock. This fact allows professionals to sell nonexistent stock. The sales are short sales relying upon shareholder accepting brokerage firm's account statement as an option on their stock. The short sales add to float. The short sales depress company's share price.
As a public company trading on OTCBB or Nasdaq, you must manage your Bid & Ask price. A well-run public company ensures shareholder liquidity. OTCBB companies should offer liquidity without creating illusion of a large trading volume. The company must make short selling difficult. The company's share price must slowly move up. There's a time to build company and its shareholder base. There's a time to promote stock. If you lack right shareholder base, your stock promotion will end with a major decline in your share price.
To contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]
He has been the Managing Director of Beowulf Investments [http://home.earthlink.net/~beowulfinvestments/] since 1981 and is the Executive Director of the Global Village Investment Club [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]