| Penny stock software packages are useful aids for | | | | shares and the price will fall, leaving investors with a |
| people involve in trading this type of stocks. | | | | bunch of worthless stocks in their hands. |
| Software programs have become necessary tools | | | | Software programs for penny traders are said to |
| for market traders and investors in these high tech | | | | help investors by providing them with information |
| times, and small-priced stocks are no different. | | | | about stocks with best reward potentials. They also |
| Penny stocks are those that trade for less than $5 a | | | | teach investors how to place their orders and how |
| share and can be acquired over the counter through | | | | to evaluate the mood of the stock market. These |
| quotation services like the Over the Counter Board | | | | products are also said to provide information about |
| and Pink Sheets operated by Pink OTC Markets. | | | | companies with penny stocks, including how their |
| They are stocks trading outside the major | | | | stocks are doing. |
| exchanges like NASDAQ and AMEX. The United | | | | There are a number of proprietary and free |
| States Securities and Exchange Commission has its | | | | software products for penny trading available to the |
| own definition of penny stocks - that of low-priced, | | | | interested investor. Some online resources offer |
| speculative stocks of a small company regardless of | | | | subscription services on penny stocks for a certain |
| market capitalization. The SEC determines whether a | | | | amount of fee. These services share the information |
| security is a penny stock based on price and not on | | | | that they get from software programs in exchange |
| market capitalization or where it is listed. | | | | for a certain amount. If an investor prefers to |
| Penny stock trading has been deemed risky by a lot | | | | purchase his or her own software, the products can |
| of market analysts and has been reported to be a | | | | range between $70 and over $1,000 depending on |
| magnet for fraud. The risk is exacerbated by the | | | | the features. One of the more popular software |
| fact that it is very difficult to get information on | | | | packages available in the market is Penny Gold |
| most of the companies trading at penny stock | | | | software. |
| markets. The SEC has warned investors against | | | | Penny stock software products might be able to help |
| companies that promote their stocks on the Internet | | | | those who plan to trade in the penny stock market. |
| to lure investors to purchase their stocks. When | | | | However, these tools can only do so much and |
| unwitting buyers make the purchase and the price of | | | | cannot completely protect users from potential |
| the stock goes up, fraudsters will then sell their | | | | fraudulent activities within the market. |