| Penny stocks are sometimes not listed within the big | | | | The absence of reporting wants can make it tricky |
| stock exchanges such as the NY Stock Exchange or | | | | to find confirmed info about the company, its money |
| the Nasdaq due to the fact that they don't meet the | | | | situation and outlook. |
| listing needs. When you buy penny stocks know that | | | | Thanks to the shortage of public interest and low |
| listed stocks must have a minimum number of | | | | number of investors the trading volume is usually low. |
| stockholders, minimum assets and file financial reports | | | | This suggests that some buy or sell orders can have |
| continually. | | | | dramatic effect on the share cost. While a listed |
| Penny stocks are customarily traded on the OTCBB | | | | stock can just about never move several hundred % |
| or on the Pink Sheets. The OTCBB ( OTC Circular | | | | inside some days, a penny stock can do that simply. |
| Board ) is an electronic quotation system for | | | | The low share price makes it feasible to obtain a |
| over-the-counter stocks that are not listed with one | | | | large quantity of shares with a touch of cash. The |
| of the nation's stock exchanges. The sole obligation is | | | | low stock costs and limited capital requirements often |
| the firms file finance reports to the SEC. | | | | attract amateur traders however penny stocks are |
| The Pink Sheets happenings are not controlled or | | | | definitely considered a playing field for experienced |
| supervised by the SEC. If the Firm has lower than | | | | financiers only. |
| $10 million dollars in total assets or lower than five | | | | Many folks will not likely succeed and then go |
| hundred total investors then no filings need be done | | | | bankrupt. They underestimate the importance of |
| at all. | | | | learning how to buy pennystocks and end up getting |
| This fact alone can make the decision to buy | | | | burned. |
| pennystocks a tricky one. | | | | The shares will finish up valueless. Remember that |
| Penny stocks are for these reasons completely open | | | | you likely can't sell your stock for days or weeks or |
| to cons and manipulation. When you buy penny | | | | only at a huge discount due to the limited liquidity. |
| stocks you had better have your head on a swivel. | | | | A good way to get some good stock picks with |
| The share price is generally far below $5 and market | | | | minimum risk is to subscribe to a picks newsletter. |
| capitalization is small as the corporations itself are | | | | You can get a free 8 week trial of a very good |
| little. | | | | newsletter by clicking on one of the links below. |