tag:blogger.com,1999:blog-89917162011-04-21T10:46:13.938-07:00Informations relating to stock brokerstockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comBlogger7301100tag:blogger.com,1999:blog-8991716.post-1104741159941341402005-01-03T00:32:00.000-08:002005-01-03T00:32:39.940-08:00Investors believe that the Bid/Ask prices represent the highest Bid and lowest asking price for any stock. In reality, the Market Maker sets the Bid & Ask prices. The pricing structure benefits the short term cash needs of the Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for the benefit of the company or the public.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110474115994134140?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104736828259419702005-01-02T23:20:00.000-08:002005-01-02T23:20:28.260-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110473682825941970?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104724961541043842005-01-02T20:02:00.000-08:002005-01-02T20:02:41.540-08:00NASD brokerage commissions can't exceed 5%. Investors are stampeding to the Net to save on brokerage commissions. Few brokerage firms still charge 5%. However, Net traders pay less than 1% brokerage commissions.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110472496154104384?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104723714520405562005-01-02T19:41:00.000-08:002005-01-02T19:41:54.520-08:00NASD Brokerage Commissions By William Cate <br /><br />Investors pay a commission and a spread whenever they buy a NASD stock. This is true about stocks trading on the Over-the-Counter Bulletin Board (OTCBB). It's true of Nasdaq stocks.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110472371452040556?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104715754064411102005-01-02T17:29:00.000-08:002005-01-02T17:29:14.066-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110471575406441110?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104711561167327112005-01-02T16:19:00.000-08:002005-01-02T16:19:21.166-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110471156116732711?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104706491969645792005-01-02T14:54:00.000-08:002005-01-02T14:54:51.970-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110470649196964579?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104702009790512452005-01-02T13:40:00.000-08:002005-01-02T13:40:09.790-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110470200979051245?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104688569414080542005-01-02T09:56:00.000-08:002005-01-02T09:56:09.413-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110468856941408054?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104684327520005042005-01-02T08:45:00.000-08:002005-01-02T08:45:27.520-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110468432752000504?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104680530206554242005-01-02T07:42:00.000-08:002005-01-02T07:42:10.206-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110468053020655424?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104672968908870602005-01-02T05:36:00.000-08:002005-01-02T05:36:08.906-08:00Investors believe that the Bid/Ask prices represent the highest Bid and lowest asking price for any stock. In reality, the Market Maker sets the Bid & Ask prices. The pricing structure benefits the short term cash needs of the Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for the benefit of the company or the public.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110467296890887060?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104669188723198992005-01-02T04:33:00.000-08:002005-01-02T04:33:08.723-08:00What investors don't realize is that there's a spread. This is the commission charged by market makers. The NASD doesn't regulate the spread. It can be 25%. What difference does it make if an investor saves 4% on brokerage commissions and pays 25% on the spread?<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110466918872319899?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104665413101076962005-01-02T03:30:00.000-08:002005-01-02T03:30:13.100-08:00NASD brokerage commissions can't exceed 5%. Investors are stampeding to the Net to save on brokerage commissions. Few brokerage firms still charge 5%. However, Net traders pay less than 1% brokerage commissions.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110466541310107696?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104661634198561362005-01-02T02:27:00.000-08:002005-01-02T02:27:14.196-08:00NASD Brokerage Commissions By William Cate <br /><br />Investors pay a commission and a spread whenever they buy a NASD stock. This is true about stocks trading on the Over-the-Counter Bulletin Board (OTCBB). It's true of Nasdaq stocks.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110466163419856136?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104657856377630692005-01-02T01:24:00.000-08:002005-01-02T01:24:16.376-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110465785637763069?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104654076523722042005-01-02T00:21:00.000-08:002005-01-02T00:21:16.523-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110465407652372204?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104650303548093002005-01-01T23:18:00.000-08:002005-01-01T23:18:23.546-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110465030354809300?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104647137988108612005-01-01T22:25:00.000-08:002005-01-01T22:25:37.986-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110464713798810861?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104643035132039902005-01-01T21:17:00.000-08:002005-01-01T21:17:15.133-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110464303513203990?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104639613744300512005-01-01T20:20:00.000-08:002005-01-01T20:20:13.743-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110463961374430051?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104636193978694682005-01-01T19:23:00.000-08:002005-01-01T19:23:13.976-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110463619397869468?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104632774432993412005-01-01T18:26:00.000-08:002005-01-01T18:26:14.433-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110463277443299341?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104629352684423382005-01-01T17:29:00.000-08:002005-01-01T17:29:12.683-08:00Investors believe that the Bid/Ask prices represent the highest Bid and lowest asking price for any stock. In reality, the Market Maker sets the Bid & Ask prices. The pricing structure benefits the short term cash needs of the Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for the benefit of the company or the public.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110462935268442338?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104626175278578772005-01-01T16:36:00.000-08:002005-01-01T16:36:15.276-08:00What investors don't realize is that there's a spread. This is the commission charged by market makers. The NASD doesn't regulate the spread. It can be 25%. What difference does it make if an investor saves 4% on brokerage commissions and pays 25% on the spread?<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110462617527857877?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104623344385121242005-01-01T15:49:00.000-08:002005-01-01T15:49:04.386-08:00NASD brokerage commissions can't exceed 5%. Investors are stampeding to the Net to save on brokerage commissions. Few brokerage firms still charge 5%. However, Net traders pay less than 1% brokerage commissions.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110462334438512124?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104619093558978412005-01-01T14:38:00.000-08:002005-01-01T14:38:13.556-08:00NASD Brokerage Commissions By William Cate <br /><br />Investors pay a commission and a spread whenever they buy a NASD stock. This is true about stocks trading on the Over-the-Counter Bulletin Board (OTCBB). It's true of Nasdaq stocks.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110461909355897841?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104615672753070492005-01-01T13:41:00.000-08:002005-01-01T13:41:12.753-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110461567275307049?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104612778066349762005-01-01T12:52:00.000-08:002005-01-01T12:52:58.066-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110461277806634976?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104609204965250952005-01-01T11:53:00.000-08:002005-01-01T11:53:24.966-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110460920496525095?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104605502583885092005-01-01T10:51:00.000-08:002005-01-01T10:51:42.583-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110460550258388509?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104601697662991462005-01-01T09:48:00.000-08:002005-01-01T09:48:17.663-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110460169766299146?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104597909135373642005-01-01T08:45:00.000-08:002005-01-01T08:45:09.136-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110459790913537364?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104594129811481022005-01-01T07:42:00.000-08:002005-01-01T07:42:09.810-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110459412981148102?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104590348262144472005-01-01T06:39:00.000-08:002005-01-01T06:39:08.263-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110459034826214447?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104586567047605432005-01-01T05:36:00.000-08:002005-01-01T05:36:07.046-08:00Investors believe that the Bid/Ask prices represent the highest Bid and lowest asking price for any stock. In reality, the Market Maker sets the Bid & Ask prices. The pricing structure benefits the short term cash needs of the Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for the benefit of the company or the public.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110458656704760543?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104582834837617612005-01-01T04:33:00.000-08:002005-01-01T04:33:54.836-08:00What investors don't realize is that there's a spread. This is the commission charged by market makers. The NASD doesn't regulate the spread. It can be 25%. What difference does it make if an investor saves 4% on brokerage commissions and pays 25% on the spread?<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110458283483761761?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104582535786297312005-01-01T04:28:00.000-08:002005-01-01T04:28:55.786-08:00NASD brokerage commissions can't exceed 5%. Investors are stampeding to the Net to save on brokerage commissions. Few brokerage firms still charge 5%. However, Net traders pay less than 1% brokerage commissions.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110458253578629731?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104579728574194672005-01-01T03:42:00.000-08:002005-01-01T03:42:08.573-08:00NASD Brokerage Commissions By William Cate <br /><br />Investors pay a commission and a spread whenever they buy a NASD stock. This is true about stocks trading on the Over-the-Counter Bulletin Board (OTCBB). It's true of Nasdaq stocks.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110457972857419467?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104573703532571302005-01-01T02:01:00.000-08:002005-01-01T02:01:43.533-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110457370353257130?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104570105192633362005-01-01T01:01:00.000-08:002005-01-01T01:01:45.193-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110457010519263336?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104565199474913062004-12-31T23:39:00.000-08:002004-12-31T23:39:59.473-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110456519947491306?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104564363866960482004-12-31T23:26:00.000-08:002004-12-31T23:26:03.866-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110456436386696048?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104558489661077892004-12-31T21:48:00.000-08:002004-12-31T21:48:09.660-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110455848966107789?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104557630737001852004-12-31T21:33:00.001-08:002004-12-31T21:33:50.736-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110455763073700185?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104557609953626252004-12-31T21:33:00.000-08:002004-12-31T21:33:29.953-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110455760995362625?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104554430666183982004-12-31T20:40:00.000-08:002004-12-31T20:40:30.666-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110455443066618398?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104554326634456462004-12-31T20:38:00.000-08:002004-12-31T20:38:46.633-08:00Investors believe that the Bid/Ask prices represent the highest Bid and lowest asking price for any stock. In reality, the Market Maker sets the Bid & Ask prices. The pricing structure benefits the short term cash needs of the Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for the benefit of the company or the public.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110455432663445646?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104552509099163212004-12-31T20:08:00.000-08:002004-12-31T20:08:29.100-08:00What investors don't realize is that there's a spread. This is the commission charged by market makers. The NASD doesn't regulate the spread. It can be 25%. What difference does it make if an investor saves 4% on brokerage commissions and pays 25% on the spread?<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110455250909916321?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104548367022189502004-12-31T18:59:00.000-08:002004-12-31T18:59:27.023-08:00NASD brokerage commissions can't exceed 5%. Investors are stampeding to the Net to save on brokerage commissions. Few brokerage firms still charge 5%. However, Net traders pay less than 1% brokerage commissions.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110454836702218950?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104544389555878642004-12-31T17:53:00.000-08:002004-12-31T17:53:09.556-08:00NASD Brokerage Commissions By William Cate <br /><br />Investors pay a commission and a spread whenever they buy a NASD stock. This is true about stocks trading on the Over-the-Counter Bulletin Board (OTCBB). It's true of Nasdaq stocks.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110454438955587864?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104536749201601652004-12-31T15:45:00.000-08:002004-12-31T15:45:49.200-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110453674920160165?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104534475311953782004-12-31T15:07:00.000-08:002004-12-31T15:07:55.310-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110453447531195378?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104528609315608642004-12-31T13:30:00.000-08:002004-12-31T13:30:09.316-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110452860931560864?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104522059765799312004-12-31T11:40:00.000-08:002004-12-31T11:40:59.766-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110452205976579931?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104519088306238612004-12-31T10:51:00.000-08:002004-12-31T10:51:28.306-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110451908830623861?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104511511798602092004-12-31T08:45:00.000-08:002004-12-31T08:45:11.796-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110451151179860209?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104508319901018512004-12-31T07:51:00.000-08:002004-12-31T07:51:59.900-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110450831990101851?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104506354064518822004-12-31T07:19:00.000-08:002004-12-31T07:19:14.063-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110450635406451882?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104502523569134012004-12-31T06:15:00.000-08:002004-12-31T06:15:23.570-08:00Investors believe that the Bid/Ask prices represent the highest Bid and lowest asking price for any stock. In reality, the Market Maker sets the Bid & Ask prices. The pricing structure benefits the short term cash needs of the Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for the benefit of the company or the public.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110450252356913401?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104499791882108992004-12-31T05:29:00.000-08:002004-12-31T05:29:51.883-08:00What investors don't realize is that there's a spread. This is the commission charged by market makers. The NASD doesn't regulate the spread. It can be 25%. What difference does it make if an investor saves 4% on brokerage commissions and pays 25% on the spread?<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110449979188210899?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104496038231771682004-12-31T04:27:00.000-08:002004-12-31T04:27:18.230-08:00NASD Brokerage Commissions By William Cate <br /><br />Investors pay a commission and a spread whenever they buy a NASD stock. This is true about stocks trading on the Over-the-Counter Bulletin Board (OTCBB). It's true of Nasdaq stocks.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110449603823177168?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104493740695527862004-12-31T03:49:00.000-08:002004-12-31T03:49:00.696-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110449374069552786?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104492633193740132004-12-31T03:30:00.000-08:002004-12-31T03:30:33.193-08:00NASD brokerage commissions can't exceed 5%. Investors are stampeding to the Net to save on brokerage commissions. Few brokerage firms still charge 5%. However, Net traders pay less than 1% brokerage commissions.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110449263319374013?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104488131044319052004-12-31T02:15:00.000-08:002004-12-31T02:15:31.043-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110448813104431905?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104483839878683962004-12-31T01:03:00.000-08:002004-12-31T01:03:59.876-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110448383987868396?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104481945237827412004-12-31T00:32:00.000-08:002004-12-31T00:32:25.236-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110448194523782741?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104481565113109902004-12-31T00:26:00.000-08:002004-12-31T00:26:05.113-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110448156511310990?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104479016548526372004-12-30T23:43:00.000-08:002004-12-30T23:43:36.546-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110447901654852637?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104476639106115352004-12-30T23:03:00.000-08:002004-12-30T23:03:59.106-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110447663910611535?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104464756052651132004-12-30T19:45:00.000-08:002004-12-30T19:45:56.053-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110446475605265113?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104461153158802032004-12-30T18:45:00.000-08:002004-12-30T18:45:53.156-08:00Investors believe that the Bid/Ask prices represent the highest Bid and lowest asking price for any stock. In reality, the Market Maker sets the Bid & Ask prices. The pricing structure benefits the short term cash needs of the Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for the benefit of the company or the public.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110446115315880203?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104459573952541272004-12-30T18:19:00.000-08:002004-12-30T18:19:33.953-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110445957395254127?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104458026811264232004-12-30T17:53:00.000-08:002004-12-30T17:53:46.810-08:00What investors don't realize is that there's a spread. This is the commission charged by market makers. The NASD doesn't regulate the spread. It can be 25%. What difference does it make if an investor saves 4% on brokerage commissions and pays 25% on the spread?<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110445802681126423?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104455075042531002004-12-30T17:04:00.000-08:002004-12-30T17:04:35.043-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110445507504253100?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104437554397807662004-12-30T12:12:00.000-08:002004-12-30T12:12:34.396-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110443755439780766?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104437414083176202004-12-30T12:10:00.000-08:002004-12-30T12:10:14.083-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110443741408317620?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104434039347434052004-12-30T11:13:00.000-08:002004-12-30T11:13:59.346-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110443403934743405?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104428796150699692004-12-30T09:46:00.000-08:002004-12-30T09:46:36.150-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110442879615069969?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104425463478898202004-12-30T08:51:00.000-08:002004-12-30T08:51:03.476-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110442546347889820?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104424959975108992004-12-30T08:42:00.000-08:002004-12-30T08:42:39.976-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110442495997510899?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104422163244040052004-12-30T07:56:00.000-08:002004-12-30T07:56:03.243-08:00Investors believe that the Bid/Ask prices represent the highest Bid and lowest asking price for any stock. In reality, the Market Maker sets the Bid & Ask prices. The pricing structure benefits the short term cash needs of the Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for the benefit of the company or the public.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110442216324404005?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104414296126204512004-12-30T05:44:00.000-08:002004-12-30T05:44:56.126-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110441429612620451?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104411018383489222004-12-30T04:50:00.000-08:002004-12-30T04:50:18.383-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110441101838348922?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104410001059388392004-12-30T04:33:00.000-08:002004-12-30T04:33:21.060-08:00What investors don't realize is that there's a spread. This is the commission charged by market makers. The NASD doesn't regulate the spread. It can be 25%. What difference does it make if an investor saves 4% on brokerage commissions and pays 25% on the spread?<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110441000105938839?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104407222882887302004-12-30T03:47:00.000-08:002004-12-30T03:47:02.883-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110440722288288730?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104406214590510632004-12-30T03:30:00.000-08:002004-12-30T03:30:14.590-08:00NASD brokerage commissions can't exceed 5%. Investors are stampeding to the Net to save on brokerage commissions. Few brokerage firms still charge 5%. However, Net traders pay less than 1% brokerage commissions.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110440621459051063?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104402432319227832004-12-30T02:27:00.000-08:002004-12-30T02:27:12.320-08:00NASD Brokerage Commissions By William Cate <br /><br />Investors pay a commission and a spread whenever they buy a NASD stock. This is true about stocks trading on the Over-the-Counter Bulletin Board (OTCBB). It's true of Nasdaq stocks.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110440243231922783?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104399140232274092004-12-30T01:32:00.000-08:002004-12-30T01:32:20.233-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110439914023227409?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104395250649315542004-12-30T00:27:00.000-08:002004-12-30T00:27:30.650-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110439525064931554?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104391229246615892004-12-29T23:20:00.000-08:002004-12-29T23:20:29.246-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110439122924661589?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104388486790690162004-12-29T22:34:00.000-08:002004-12-29T22:34:46.790-08:00Let's assume that the highest bid is one dollar in an OTCBB stock. The Market Maker can show the highest bid as seventy-five cents. If the lowest ask price is seventy-five cents, the Maker makes the trade. However, the bidder pays one dollar for the stock. The Market Maker keeps the quarter per share as their spread. The result is the buyer has paid over a 25% commission on the sale of the stock<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110438848679069016?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104384938929803142004-12-29T21:35:00.000-08:002004-12-29T21:35:38.930-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110438493892980314?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104382452361770702004-12-29T20:54:00.000-08:002004-12-29T20:54:12.360-08:00NASD brokerage commissions can't exceed 5%. Investors are stampeding to the Net to save on brokerage commissions. Few brokerage firms still charge 5%. However, Net traders pay less than 1% brokerage commissions.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110438245236177070?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104372270509707042004-12-29T18:04:00.000-08:002004-12-29T18:04:30.510-08:00If you are a public company, investigate how your market maker handles trades of your stock. If they are solely interested in their short term profit, meet with them. Restructure your agreement so that the Market Maker makes money, but your company benefits.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110437227050970704?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104371724290088032004-12-29T17:55:00.000-08:002004-12-29T17:55:24.290-08:00Investors believe that the Bid/Ask prices represent the highest Bid and lowest asking price for any stock. In reality, the Market Maker sets the Bid & Ask prices. The pricing structure benefits the short term cash needs of the Market Maker to make money. It's rare to have a Market Maker that trades a company's stock for the benefit of the company or the public.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110437172429008803?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104369845271579722004-12-29T17:24:00.000-08:002004-12-29T17:24:05.270-08:00What investors don't realize is that there's a spread. This is the commission charged by market makers. The NASD doesn't regulate the spread. It can be 25%. What difference does it make if an investor saves 4% on brokerage commissions and pays 25% on the spread?<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110436984527157972?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104360565554662812004-12-29T14:49:00.000-08:002004-12-29T14:49:25.553-08:00NASD Brokerage Commissions By William Cate <br /><br />Investors pay a commission and a spread whenever they buy a NASD stock. This is true about stocks trading on the Over-the-Counter Bulletin Board (OTCBB). It's true of Nasdaq stocks.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110436056555466281?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104355012406837192004-12-29T13:16:00.000-08:002004-12-29T13:16:52.406-08:00The goal of the NASD was to have the Market Making broker act like a stock specialist on the American or New York Stock Exchanges. It doesn't work because the NASD broker makes their money buying and selling stock for their own account. The Stock Exchange Specialist makes money by buying and selling shares to maintain an orderly market in the company's stock.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110435501240683719?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.comtag:blogger.com,1999:blog-8991716.post-1104353725652657132004-12-29T12:55:00.000-08:002004-12-29T12:55:25.653-08:00Maker Makers can buy stock for their own account. If there's strong Bid demand, the Market Maker isn't obligated to reflect it in the Bid & Ask prices. This allows the Market Maker to buy shares at lower prices for their own account. Once they own the low-priced ask stock, they report the stronger bids. They sell the stock, adding the stock sale profit to their spread. A heavily traded stock makes money for anyone making a market in it.<br /><br /><div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/8991716-110435372565265713?l=stockbrokernow.blogspot.com' alt='' /></div>stockresourceshttp://www.blogger.com/profile/06755127155325216986noreply@blogger.com