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/]

Applying 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 that 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 deserve 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 contact author: Visit Beowulf Investments website: [http://home.earthlink.net/~beowulfinvestments/] Or, visit Global Village Investment Club Website: [http://home.earthlink.net/~beowulfinvestments/globalvillageinvestmentclubwelcome/]