Puma Biotechnology Inc (NYSE: PBYI) has had one of its most volatile weeks in recent memory thanks to weak demand for a secondary offering. falling over 28 percent from its Tuesday high of $54.65

To make things even more interesting for traders, the biotech company is also part of the SEC’s new tick size pilot program, which began at the beginning of the month.

On October 3, 1,200 small-cap stocks began trading in five-cent increments as part of test. Many of the stocks selected to participate in the program are typically thinly-traded, and the SEC is looking to see what type of impact a five-cent tick increment will have on trading volume and market liquidity.

The SEC is hoping that increasing the tick size for these stocks will encourage brokers to make markets in many of these thinly-traded stocks and reduce the volatility and risk in the names.

PreMarket Prep’s Dennis Dick believes over-the-counter trading volumes have a much bigger impact on small cap liquidity than tick size.

“They may need…

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