| Perhaps you are new to the idea of buying stacks | | | | check that the companies are registered with the US |
| and shares, have a few extra dollars, and are looking | | | | Securities and Exchange Commission (SEC). One |
| to see how to make your money grow. The price of | | | | problem with buying these stocks is that the |
| shares for companies like Microsoft is too high for | | | | companies are too small to file their financial reports |
| your budget, so what can you invest in? | | | | with the SEC, so sometimes the only information |
| Penny stocks could be what you want. They are | | | | available is false. The fact that there is no reliable |
| cheap shares, sold at between $1 and $5. You won't | | | | information and no minimum listing standards, are |
| find them listed in the S&P 500 or NASDAQ, so | | | | deterrents to buying this kind of stock. |
| how do you know what companies are selling shares | | | | However, you should do some research into the |
| at these prices? If you go to the reference section | | | | companies, for example, what exactly do they do? |
| of your local library you will find a copy of Walker's | | | | Do they make products or are they a service |
| Manual of Penny Stocks. This manual lists 500 | | | | industry? Are they involved in manufacturing are they |
| companies which sell share at these low prices. | | | | an environmentally friendly company? How viable is |
| However, you cannot reasonably expect to get rich | | | | the product they make? Would you want to buy it, |
| quick by buying these stocks. Some companies, such | | | | or do you think it would be popular? |
| as &-Eleven began by being penny stock | | | | The best thing to do would be to seek advice from |
| companies, so you can make money in this way, but | | | | a financial advisor before investing money in penny |
| it will take time and you have to do some research | | | | stocks. If you don't particularly want to do that, the |
| and have a little, or a lot, of luck. | | | | next best advice is to only invest what you can |
| You can buy these shares over the counter, on the | | | | afford to lose. This is true of whatever company you |
| OTC market. Prices are quoted in the OTC system | | | | invest in. There is no guarantee that shares will |
| for example on the OTC Bulletin Board or in the pink | | | | increase in value, and every chance that they will in |
| sheets. Before buying any penny shares, you should | | | | fact depreciate, so think before you invest. |