$0.01 wide at $4 $0.01 wide at $40 Which penny represents a larger % of the underlying? The rebate liquidity providers will be gone. I'd imagine C was THE stock in that space.
Some won't make it, others will trade different symbols. The trading in the other symbols won't be the same as C though: the volume, liquidity, profits, etc. will be at a much smaller scale relative to C.
which reminds me the reverse split of sun, from 5 to 20 or so. Some weeks later it traded again under 10.
I think what he meant was if you trade the same dollar volume. Example you pump in $100,000 into the stock. 25,000 shares at $4 or 2500 shares at $40 Same difference in percentage. Though there is a huge difference in potential slippage and ecn rebates at the higher price as the amount of shares traded is far less.
========= Thanks mr M market Re;4 sure, 4 sure/ still a good downtrend. So according to that article, a Co that owns''100 million shares ''of C worth 44 million; will still have a downtrending penny stock , butshortly, overpriced by the ratio of 10 to one. So looks like if the stock is now[+/] priced @ $44.44; its still downtrernding towards $4, or 00.44 With all due respect to the CEO; to call it a different co is to ignore what the market has been /now values C.
Why is this done? This game â a variation on paying for order flow â has been much criticized, but with over 40 venues to trade on, it is now an essential element to attract liquidity to exchanges. By the way, the exchanges give rebates for all stocks, not just Citi. But the low price and high volume of Citi has made it especially attractive for those seeking to profit from rebates. How long has this been going on? Well, it started about 20 years ago, when an ambitious guy started offering rebates on the Cincinnati Stock Exchange. That guy's name was... Bernie Madoff. http://www.cnbc.com/id/41155853/Trading_in_Citi_Is_a_Whole_Sub_Industry Almost 2 months to the day since the article was posted and the C trade was exposed. I have seen many of these gimmicks come and go, learn how to chart, pick good companies, you will have a nice profitable career
One of the readers of that article commented on it and explained what I thought to be true. You still have to manage the risk somehow of holding onto so many shares and then turning around and selling. I don't understand how non-automated, slow traders can pull this off in any reasonable fashion. Or, do they just camp out and wait for the price to revert, getting lucky on some days?