Investors pay a commission and a spread whenever they buy a NASD stock. This is true about stocks trading on Over-the-Counter Bulletin Board (OTCBB). It's true of Nasdaq stocks.

NASD brokerage commissions can't exceed 5%. Investors are stampeding to Net to save on brokerage commissions. Few brokerage firms still charge 5%. However, Net traders pay less than 1% brokerage commissions.

What investors don't realize is that there's a spread. This is commission charged by market makers. The NASD doesn't regulate spread. It can be 25%. What difference does it make if an investor saves 4% on brokerage commissions and pays 25% on spread?

Investors believe that Bid/Ask prices represent highest Bid and lowest asking price for any stock. In reality, Market Maker sets Bid & Ask prices. The pricing structure benefits short term cash needs of Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for benefit of company or public.

If investors won't buy your stock, you'll never find an IPO underwriter. Without an underwriter, your Public Company can't raise money. The underwriter's clients buy your stock with expectation that it will appreciate. If investors don't buy your stock, underwriter's clients will lose their money. The underwriter will lose their clients. Underwriters refer to losing their clients as "Turning their Book." If they can't replace their lost clients, underwriters are out of brokerage business. It's for this reason that underwriters expect you to support share price of your public company.

When buying exceeds selling, your share price goes up. When selling exceeds buying, your share price goes down. Your Stock Support Plan should guarantee that buying exceeds selling.

If your private company is well known to investment community, you will have a "Hot Stock." Buying will exceed selling and underwriter's clients will see share price appreciation. Companies like Microsoft, Netscape, or Solomon Brothers are examples of "Hot Stock" issues. The stock support problem for these companies is sustaining investor interest after their share price settles.

Your private company can be profitable. It should be in an industry currently popular with investors. Your stock support plan must attract investors based upon your company's fundamentals. Your investors must be prepared to buy stock from day your company starts to trade. You must sustain buying at a share price above underwriter's Initial Public Offering (IPO) price.

Your private company may be a startup or unprofitable. If so, it must be in an industry currently popular with investors. Usually, you must supply part of underwriter's clients buying your IPO or Private Placement. Usually, this means that your family, friends and business associates will be required to buy 50% to 90% of IPO or Private Placement stock. You will be expected to ensure buyers at share prices above IPO or Private Placement share price.