OTC Market Makers

Discussion in 'Order Execution' started by djholmes, May 26, 2010.

  1. djholmes


    Hi Guys,

    Was wondering if anyone knows how an OTC market maker can help a company create liquidity and enchance trading volume?

  2. rosy2


    they are like bookies. willing to take the other side of bets. if the bookie is not around you can only bet against a person interested in the same thing as you.
  3. djholmes


    thanks for you reply. I was wondering would market makers help a company by buying a bunch of cheap shares from the company, and then sell the shares themselves?
  4. rosy2


    no, thats what the IPO is for
  5. Yes ... of course small market makers do it all the time but it is a very tricky game with two inherient problems:

    A) The line is very easy to cross in any conversation about what you want to accomplish leaving you open to either a manipulation charge or a conspiracy to manipulate or both.

    B) If the market maker smells you are an amateur he will promise the moon (It will trade 20,000 shares a day and my bid will be good for a thousand shares at a buck at all times) and instead of enhancing the market he will dump on whoever has a quote and your 10 cent stock will be 2 cents bid late in day one.

    You need a pro. BTW, the Pacific Northwest ... Spokane, Salt Lake and Vancouver have a concentration of broker dealers that engage in these operations. Some of them are legitimate from both a legal prospective and taking a real interest in the company ... but most are scum.

    If you have a company with prospects that are real PM me. But if it is simply a piece of paper you need to move save yourself the effort. I have no interest in outright "shells" and, the fact is, we are not in a bull market that makes weak operations doable even by those in that game.