Comments on: What is the SEC standard for pricing (OTC) stocks in my broker acct? H/L Bid, Ask, Last Close? http://www.tradingindicators.org/what-is-the-sec-standard-for-pricing-otc-stocks-in-my-broker-acct-hl-bid-ask-last-close Stock, Forex and Futures Trading Indicators for Technical Analysis Thu, 26 Jan 2012 17:05:34 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Freddy Fuhktarred http://www.tradingindicators.org/what-is-the-sec-standard-for-pricing-otc-stocks-in-my-broker-acct-hl-bid-ask-last-close#comment-1528 Freddy Fuhktarred Wed, 07 Jul 2010 19:22:43 +0000 http://www.tradingindicators.org/what-is-the-sec-standard-for-pricing-otc-stocks-in-my-broker-acct-hl-bid-ask-last-close#comment-1528 sec standard--end of day price or last sale (during market hours).. if you have a stock that is very illiquid (very few trades per day), they might use highest bid but I have never heard of that..it would make sense if its illiquid, the highest active bid is really what its worth.. sec standard–end of day price or last sale (during market hours)..

if you have a stock that is very illiquid (very few trades per day), they might use highest bid but I have never heard of that..it would make sense if its illiquid, the highest active bid is really what its worth..

]]> By: Steve D http://www.tradingindicators.org/what-is-the-sec-standard-for-pricing-otc-stocks-in-my-broker-acct-hl-bid-ask-last-close#comment-1529 Steve D Wed, 07 Jul 2010 19:22:43 +0000 http://www.tradingindicators.org/what-is-the-sec-standard-for-pricing-otc-stocks-in-my-broker-acct-hl-bid-ask-last-close#comment-1529 This is relatively normal in thinly traded stocks. What is happening is that the market is very uneven and the last sell or buy may not have a counter sell or buy, meaning that the trade is taking place at the market maker's level. Thus, the last bid may be the accurate price for the stock (the stock may have sold out of the trader's portfolio and as such was the last trade). Obviously, your main issue is with the lack of liquidity in this stock, not with the brokerage. This is relatively normal in thinly traded stocks. What is happening is that the market is very uneven and the last sell or buy may not have a counter sell or buy, meaning that the trade is taking place at the market maker’s level. Thus, the last bid may be the accurate price for the stock (the stock may have sold out of the trader’s portfolio and as such was the last trade).

Obviously, your main issue is with the lack of liquidity in this stock, not with the brokerage.

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