NASD Bid & Ask

Written by William Cate


Continued from page 1

Few buyers buy stock. They buyrepparttar right to ownrepparttar 112503 stock from their brokerage firm. Their right is reflected on their monthly brokerage account statement. Essentially, their right is an option issued byrepparttar 112504 brokerage firm torepparttar 112505 client. It qualifiesrepparttar 112506 client for share price appreciation, ifrepparttar 112507 stock moves up. Of course, to benefit from share price appreciation,repparttar 112508 shareholder must sell their stock (option). Few public shareholders sell in an upward moving Market.

Unlessrepparttar 112509 buyer becomes a registered shareholder ofrepparttar 112510 company,repparttar 112511 buyer doesn't ownrepparttar 112512 stock. This fact allows professionals to sell nonexistent stock. The sales are short sales relying uponrepparttar 112513 shareholder acceptingrepparttar 112514 brokerage firm's account statement as an option on their stock. The short sales add torepparttar 112515 float. The short sales depressrepparttar 112516 company's share price.

As a public company trading onrepparttar 112517 OTCBB or Nasdaq, you must manage your Bid & Ask price. A well-run public company ensures shareholder liquidity. OTCBB companies should offer liquidity without creatingrepparttar 112518 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 buildrepparttar 112519 company and its shareholder base. There's a time to promoterepparttar 112520 stock. If you lackrepparttar 112521 right shareholder base, your stock promotion will end with a major decline in your share price.

To contactrepparttar 112522 author: Visitrepparttar 112523 Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visitrepparttar 112524 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/]


Non-Reporting Shells

Written by William Cate


Continued from page 1

Applyingrepparttar axiom that "There's a sucker born every minute," an industry developed to sell these worthless shells to unsuspecting private companies. You can own your worthless non-reporting shell for only US$150,000.

I interviewed one shell seller for a client. To my comment thatrepparttar 112502 shell company was facing delisting in August, his reply was, "but there is so much more you can do with a company about to be delisted."

My reply was "what more can I do with a company that's about to be delisted? There was a pause and then a click.

If you buy a non-reporting shell, you deserverepparttar 112503 failure that will certainly follow. There are a few things that can be done with non-reporting shells. But these are options for market professionals, not entrepreneurs building real companies.

To contactrepparttar 112504 author: Visitrepparttar 112505 Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visitrepparttar 112506 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/]


    <Back to Page 1
 
ImproveHomeLife.com © 2005
Terms of Use