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Conference nyoss1::market_investing

Title:	Market Investing

Moderator:	2155::michaud

Created:	Thu Jan 23 1992
Last Modified:	Thu Jun 05 1997
Last Successful Update:	Fri Jun 06 1997
Number of topics:	1060
Total number of notes:	10477

295.0. "Stop orders on the OTC" by CTHQ1::COLLOPY () Mon Oct 19 1992 20:22

	
	The other day I tried to enter a "stop" order on some shares of
	stock I own on the OTC in order to protect a recent gain. I was told 
	that stop orders can only be entered on the NYSE and ASE. Anyone know
	why this is? I think it's odd given that the OTC is claiming
	to be the most automated and computerized trading system in the 
	world.


				thanks, Steve

T.R	Title	User	Personal Name	Date	Lines
295.1		SDSVAX::SWEENEY	EIB: Rush on 17, Pat on 6	`Mon Oct 19 1992 21:38`	2
	If the stock is traded on the NASD "NMS" national market system then you can enter a stop. If it's quoted bid/ask, you can't.
295.2	It's not an exchange	VMSDEV::HALLYB	Fish have no concept of fire.	`Tue Oct 20 1992 11:20`	12
	The long and short of it :-) is that exchange-traded stocks have specialists with order books and an obligation to make markets. Bids and asks come to a post on the floor; it's lots of fun. NASDAQ ("license to steal") has a bunch of dealers with computers in the privacy of their offices and no obligation. It's a completely different set-up, and only this year was it even possible to enter stops on -some- stocks. I think it's even more restrictive than the NMS list, based on a newspaper article that said "only a few" stocks could have stops. John
295.3	but OTC has excellent growth companies too	BUOVAX::DUNCAN	Free and Flying	`Mon Nov 02 1992 21:28`	4
	Yep, NASDAQ has stops for only a few of the larger-cap stocks. Lack of stops on the OTC is one of its biggest drawbacks.