When you are just beginning to invest in penny stocks, there are some fundamentals you need to know to be successful. For example, did you know that you can save time and money by joining a penny stock picking service? Indeed, there are thousands of penny stocks on the OTC stock market to evaluate in order to pick the best penny stocks. It is also true that you can purchase penny stocks for pennies, i.e, from $0.001 to $5.00 per share over the counter. OTC stands for "Over-The-Counter," and it refers to stocks, including penny stocks, that you can buy outside of the stock exchange such as the NYSE. Further more, the Security Exchange Commission defines penny stocks as company stock that is priced at less than $5.00. Finding the best stocks under 5 U.S. dollars can be daunting, and it is no wonder that veteran penny stock investors subscribe to one or more of reputable penny stock picking services.
The key to finding the best penny stocks to invest in is knowing how to find them. You have the choice of doing the research yourself or you can join a paid membership or free penny stock picking services. Penny stock investing is such a highly risky business that you need to have investing strategies. Finding readily available information on penny stock is the hardest aspect of investing. The task is made more difficult by the sheer volume of the number of penny stocks you need to review. Moreover, there are "pump and dump" penny stocks to avoid. Promoters of pump and dump penny stocks often prey on unsuspecting newbies and mom-and-pop investors who find it difficult to find information on the best penny stocks to buy. For a one-time small fee, you can save money and time by joining paid membership such as the Penny Stock Egghead. As their member, you will be on their emailing list and they will provide you with a weekly penny stock list every Monday, and a follow up every Sunday.
For Penny Stock investing beginners, the internet offers both challenges and rewards. The challenges consist of, among other things, the information overload you have to sift through to pick the "golden nuggets" of penny stocks. After you have learned how to navigate the internet landscape, you will soon start to realize that there are opportunities to make more money with penny stock trading. But, you need to learn to avoid becoming a victim of pump and dump penny stock purveyors. Pumping and dumping in penny stock investing refers to penny stock newsletter scams and other schemes that target investors with little or no information on how to find the best stocks. They lure them into signing up for worthless penny stocks.
When you are looking for penny stock pickers, beware of the following:
Promoters of penny stock service who assert information that is patently untrue for the purpose of enticing you to subscribe to their pump and dump penny stocks
Stock picking services offering information they claim is "insider" news for picking micro cap stocks
Pump and dump newsletters that offer to provide you with a list of penny stocks that could be their own company stock without providing specifics.
Messages in chat rooms or stock message boards with a sense of urgency that you buy this or that stock now.
Schemes by penny stock promoters which involve pumping and dumping penny stocks can leave you holding the proverbial empty bag of worthless penny stocks. By design, a promoter often sells or downloads (dumps) their shares immediately after pumping up and selling unsuspecting investors on the benefits of certain penny stocks, but before purchasers of that stock realize what is going on. Since the promoters are no longer pushing for the stocks involved, the price consequently drops down to levels that make your stocks worthless.
To protect investors and the public at large from unscrupulous penny stock promoters, SEC is all out looking for pump and dump penny stock scams. According to the Washington Post, the SEC recently announced that it is redoubling its effort to combat the manipulations of "micro-cap" stocks, opening about half a dozen investigations each month into schemes suspected of bilking mom-and-pop investors. Registered companies' stocks are often classified as micro-cap or blue-chip stocks, depending on the size of a company's market capitalization.The key difference is that it is relatively easy to find information on Blue-Chip stock companies because they often file period reports with SEC.
SEC rules are intended to make sure that there is transparency and efficiency in the stock market, and that everybody plays by the same rules. However, it can be difficult for an investor to find information on penny stock companies if there are no reports made available to the public. Most experts agree that the OTC includes registered companies whose stock is not listed on the stock exchanges. Besides the SEC requirement for periodic reports, stock exchanges such as the NYSE have their own financial and market capitalization criteria for listed companies. Companies that are thinly traded or not in compliance with financial reporting requirement get delisted. It is also believed that most companies who are not listed with stock exchanges often end up on the OTC. When this happens, penny stock investors are not able to get information they would other wise get from a Blue-Chip stock company. For this reason, you need to do due diligence in dealing with thinly traded stock companies and their promoters who tout "insider" information.
The reference to micro-cap is not meant to confuse you. OTC penny stocks and Micro-cap stocks mean the same thing. Micro-cap is a term that refers to stock companies that are registered with SEC but whose stock is not listed on a major stock exchange such as the New York Stock Exchange (NYSE). Also, micro-cap stock companies include stock companies who are registered but never got listed on a stock at exchange at inception because of their size. These type of stock companies are said to be "thinly traded" because there are fewer buyers and sellers for the stock. With exception, of course, it is generally difficult to find information on micro-cap stocks, so most institutional investors avoid investing in penny stocks. In addition, because of low volumes, institutional investors are afraid of being duped by pump and dump penny stock promoters and who may manipulate stock prices. Thus, institutional investors prefer to deal in blue-chip stock companies whose periodic reports they can find and peruse to make informed investment decisions.
In conclusion, blue chip stock companies are companies whose stock you can buy on the stock exchange. Blue chip stock are different from penny stocks in many ways. Among other things, institutional investors prefer investing in blue chip stocks because they can easily find and analyze information contained in the periodic reports filed with SEC. They usually avoid investing in penny stock for lack of information. There are some companies listed on the stock exchange with the stocks trading at less than $5; however, the bulk of stocks under 5 (a term that refers to penny stocks) can be bought or sold over-the-counter (OTC). OTC just means that the transactions take place outside of the stock exchange. If you are looking to invest in penny stock, your best bet is to have a strategy such as joining the Penny Stock Egghead to help you pick profitable penny stocks.
Visit at http://getmoneyapps.com/penny-stocks to learn more about penny stocks
The key to finding the best penny stocks to invest in is knowing how to find them. You have the choice of doing the research yourself or you can join a paid membership or free penny stock picking services. Penny stock investing is such a highly risky business that you need to have investing strategies. Finding readily available information on penny stock is the hardest aspect of investing. The task is made more difficult by the sheer volume of the number of penny stocks you need to review. Moreover, there are "pump and dump" penny stocks to avoid. Promoters of pump and dump penny stocks often prey on unsuspecting newbies and mom-and-pop investors who find it difficult to find information on the best penny stocks to buy. For a one-time small fee, you can save money and time by joining paid membership such as the Penny Stock Egghead. As their member, you will be on their emailing list and they will provide you with a weekly penny stock list every Monday, and a follow up every Sunday.
For Penny Stock investing beginners, the internet offers both challenges and rewards. The challenges consist of, among other things, the information overload you have to sift through to pick the "golden nuggets" of penny stocks. After you have learned how to navigate the internet landscape, you will soon start to realize that there are opportunities to make more money with penny stock trading. But, you need to learn to avoid becoming a victim of pump and dump penny stock purveyors. Pumping and dumping in penny stock investing refers to penny stock newsletter scams and other schemes that target investors with little or no information on how to find the best stocks. They lure them into signing up for worthless penny stocks.
When you are looking for penny stock pickers, beware of the following:
Promoters of penny stock service who assert information that is patently untrue for the purpose of enticing you to subscribe to their pump and dump penny stocks
Stock picking services offering information they claim is "insider" news for picking micro cap stocks
Pump and dump newsletters that offer to provide you with a list of penny stocks that could be their own company stock without providing specifics.
Messages in chat rooms or stock message boards with a sense of urgency that you buy this or that stock now.
Schemes by penny stock promoters which involve pumping and dumping penny stocks can leave you holding the proverbial empty bag of worthless penny stocks. By design, a promoter often sells or downloads (dumps) their shares immediately after pumping up and selling unsuspecting investors on the benefits of certain penny stocks, but before purchasers of that stock realize what is going on. Since the promoters are no longer pushing for the stocks involved, the price consequently drops down to levels that make your stocks worthless.
To protect investors and the public at large from unscrupulous penny stock promoters, SEC is all out looking for pump and dump penny stock scams. According to the Washington Post, the SEC recently announced that it is redoubling its effort to combat the manipulations of "micro-cap" stocks, opening about half a dozen investigations each month into schemes suspected of bilking mom-and-pop investors. Registered companies' stocks are often classified as micro-cap or blue-chip stocks, depending on the size of a company's market capitalization.The key difference is that it is relatively easy to find information on Blue-Chip stock companies because they often file period reports with SEC.
SEC rules are intended to make sure that there is transparency and efficiency in the stock market, and that everybody plays by the same rules. However, it can be difficult for an investor to find information on penny stock companies if there are no reports made available to the public. Most experts agree that the OTC includes registered companies whose stock is not listed on the stock exchanges. Besides the SEC requirement for periodic reports, stock exchanges such as the NYSE have their own financial and market capitalization criteria for listed companies. Companies that are thinly traded or not in compliance with financial reporting requirement get delisted. It is also believed that most companies who are not listed with stock exchanges often end up on the OTC. When this happens, penny stock investors are not able to get information they would other wise get from a Blue-Chip stock company. For this reason, you need to do due diligence in dealing with thinly traded stock companies and their promoters who tout "insider" information.
The reference to micro-cap is not meant to confuse you. OTC penny stocks and Micro-cap stocks mean the same thing. Micro-cap is a term that refers to stock companies that are registered with SEC but whose stock is not listed on a major stock exchange such as the New York Stock Exchange (NYSE). Also, micro-cap stock companies include stock companies who are registered but never got listed on a stock at exchange at inception because of their size. These type of stock companies are said to be "thinly traded" because there are fewer buyers and sellers for the stock. With exception, of course, it is generally difficult to find information on micro-cap stocks, so most institutional investors avoid investing in penny stocks. In addition, because of low volumes, institutional investors are afraid of being duped by pump and dump penny stock promoters and who may manipulate stock prices. Thus, institutional investors prefer to deal in blue-chip stock companies whose periodic reports they can find and peruse to make informed investment decisions.
In conclusion, blue chip stock companies are companies whose stock you can buy on the stock exchange. Blue chip stock are different from penny stocks in many ways. Among other things, institutional investors prefer investing in blue chip stocks because they can easily find and analyze information contained in the periodic reports filed with SEC. They usually avoid investing in penny stock for lack of information. There are some companies listed on the stock exchange with the stocks trading at less than $5; however, the bulk of stocks under 5 (a term that refers to penny stocks) can be bought or sold over-the-counter (OTC). OTC just means that the transactions take place outside of the stock exchange. If you are looking to invest in penny stock, your best bet is to have a strategy such as joining the Penny Stock Egghead to help you pick profitable penny stocks.
Visit at http://getmoneyapps.com/penny-stocks to learn more about penny stocks
About the Author:
The internet is evolving, and you need to keep abreast with the changes. Making money with penny stocks can be rewarding if you know how to pick the best penny stocks to buy. Most penny stocks are worthless, but you can find the best stocks under 5 by learning how to look for undervalued penny stocks. The key to making money online is learning and discovering new ways, tools and strategies to keep abreast with the ever changing economy. You can reallyMake more money with penny stock egghead by referring to our website right now. Get the latest advice directly from this useful source of information at http://getmoneyapps.com/stock-picks.
No comments:
Post a Comment