September 12, 2019
Market Makers & the Dilution dilemma in the OTC The underlying issues as a retail investor i have witnessed & gone through when Dilution is present in an NMS stock is abusive market making (Short selling). The company issues shares to the public to provide operating capital, however in selling to the market there is also abusive selling or stacking of the ask by the market makers algorithms to stifle the price giving retailers a small chance to make a return. The algorithms rather than providing liquidity are actually stealing liquidity hurting both retailers and the company. The issue is a really big problem. Rules should be set forth to remedy the problem. A low percentage of the volume should be allowed in making a market in a stock that is diluting. In a Dilutive company there may be collusion to sell the price down as other entities short the stock to gain a competitive advantage. Markers or tags should be used on the Dilutive shares to know the trail of shares sold into the market. Adding tags would help to monitor manipulation & the dilutive stocks that market makers may be abusing. Setting restrictions can stop the suffocation and decrease in share prices. I hope others can elaborate on this issue to change the unfair gaming of the system. Thanks John Guerriero Sent from my Verizon, Samsung Galaxy smartphone