| Penny stocks can be defined as those stocks which | | | | - BusinessStructure |
| trade below $5 per share. There are some regulatory | | | | Take for example, if the company maximizes the OS |
| agencies which often classify them as a stock with a | | | | and closes to AS then it means that there is no |
| price below $2. But, generally speaking, a penny | | | | dilution in stocks. |
| stock is a stock trading below $5 and only trades on | | | | Generally speaking, people think of penny stocks as a |
| one of two exchanges; the Pink Sheets or the OTC | | | | poor investment. However, it can be a rewarding |
| Bulletin Board. | | | | investment because you are investing in those |
| Penny Stocks can prove risky, but it can also offer | | | | companies which are on the poised of making huge |
| great opportunities for the investors to generate lot | | | | gains. Using pennystocks you can make a lost more |
| of money. No-doubt it is very risky, but it offers | | | | money as compared to blue-chip stocks. |
| great opportunities for the investors to generate a | | | | Before you actually plan to invest into penny stock |
| lot of money. If the investors know their objectives | | | | you must do your research. You should find out how |
| then there is a possibility of winning some good | | | | many shares the company has in its float. The float is |
| money in a short period of time. For the Penny stock | | | | the numerical number of shares which are currently |
| investors, a good investment advice and right tools | | | | being traded. Companies which are listed on the Pink |
| help can help to survive and make a lot of money. | | | | Sheets usually do not make this report public, but |
| Below are some of the features which can help | | | | with a little research, you can easily find out. It is |
| investors to gather essential information about a | | | | usually mentioned in articles written about the |
| company prior to investigating in them. | | | | Company trading penny stock or in TV or radio |
| - Stock Structure: OS (Outstanding Stock and Float) | | | | interviews with company officials. This information |
| and AS (Shares Authorized) | | | | can be found of various websites. |
| - Valuationand Position of the Company | | | | Once you make up your mind, an investor has to |
| - SEClisting | | | | decide the entry point and execute the stocks in an |
| - TurnOver and Financial record | | | | appropriate way. You must analyze the trading chart |
| - Transferagent transparency | | | | for a few days as it will offer valuable information. |