Nov. 20 at 5:06 PM
$VEEA 7 CENT SPREAD
A very wide spread (seven cents or more) on a stock that trades for very low price means that if you buy and immediately sold, you could lose a lot simply because the bid is much lower than the ask. Indeed, the regulatory guidance warns that “the difference between the bid and the offer price is the dealer’s ‘spread’. A spread that is large compared with the purchase price can make a resale of a stock very costly.”
Raymond James
+1
Possibility of manipulation: If a market maker or dealer is setting a very wide spread and/or dominating the quotes, it may raise questions under market manipulation rules (for example under Securities Exchange Act of 1934 § 9(a)‑2 which prohibits manipulative and deceptive devices) or other broker‑dealer duty rules.
Wikipedia
+1
Especially in penny stocks, thin trading and few participants increase risk of unfairness (e.g., you might get filled at an unfavorable price or find no bid to sell).
