Claritas Pharmaceuticals Inc V.CLAS.H

RE: RE: BULL Droppings Trading

[KingWhatsi]

Good posts housewife.

I sometimes wonder what some of these people think they are doing and what they think the stock market is. If they had read the details of even just the last PP for QEI the details would be painfully obvious.

When a Public Company incorporates, they set aside a number of shares (hopefully with fair valuation) that are made available to the public. In today's environment it would be hopeless for the company to promote their shares on their own so what they do is sell bulk lots to MM's who are willing to risk their capital on them. They do it to raise capital to develop their business. Once done, they have nothing more to do with the shares. Their only responsibility from then on is to use the money wisely and build value for the company. If they do, the value of the shares increase, if they don't, the shares crash - nobody will invest in them any more and the company will fail. The Market Makers have enough faith in the company's management and business plan to risk their money.

The MM's in turn promote and trade those shares on the open market to dummies like us. They do it for profit (return on their investment). They are not  "Buy and Hold Investors"

Sprott, on the other hand IS a "Buy and Hold Investors" on behalf of their clients.

You can curse the Market Makers all you like but the fact is that without them we would have to head to Vegas or something if we wanted to gamble our cash because there would be NO Market to play in.