[PennyPlayer]

"A SEC filing required for companies wishing to issue equity to their employees.”

This is just my opinion; please respond with your own analogy?

An s-8 is a form that is sent to the sec to show intent by the company to issue new stock from its authorized shares. It can be used to compensate employees or officers of the company. Market Makers (MM’s) then move the price of the stock down to facilitate the selling of the s-8 shares. MM's generally buy up allot of these s-8 shares themselves then move the price higher and sell out there own positions. Two parts of this equation can take place. IE., the stock price can move lower (significantly by the volume) if the s-8's have been sold into the market. One way to watch for this process, watch closely to the Market Makers when a s-8 is filed, see which of the Market Makers are driving the stock, Nite, Hudson, etc, watch for them to move on and off the bid, when they are done they will come off the bid and let the company (find out what the companies MM is) start to sell or buy more.

Here’s the official form for a S-8.

http://www.sec.gov/about/forms/forms-8.pdf

Penny