RE: What is the spread?5 Jan 2025 09:06
Thanks kojak - great explanation.
I do understand what a spread is and your explanation was exactly correct as I understand it . I am invested here with over 4.5 million shares , my query was really why the spread should be so large it is set buy the Mm,s to create a market so any posted “headline” spread does affect an investment decision- I understand that a small company does. It have the liquidity of a larger blue chip co where the spread are really tight due to mask e volumes and liquidity.
My question was why would the MM’s stifle liquidity in smaller stocks by creating a
Market the has such wide spreads that it put off most investors from getting involved due to the time it may as you say take to recoup an instant paper loss - I mean trading is stressful enough so a wide spread to me seems to be an obstacle for both retail and institutional investors to take a look at - I would suggest a tighter spread would encourage investors to pile into a lot of stocks that seem on the surface to be a good investment but are held back by the instant paper loss. Thanks again for your polite response .