[Penny Stock] Penny Trading Fortunes Article through Kelvin P. NashMany individuals who invest in cent stocks hope their own initial tiny opportunities will grow in order to massive fortunes. They are looking to obtain the next Microsoft or even Dell. See if penny trading is the right investment for you personally. Penny stocks usually trade below dollar 5. They are exchanged on the over-the-counter bulletin board (OTCBB) or even the pink linens. They are not traded about the New York Stock market (NYSE) or the actual Nasdaq. Investing in penny stocks can be quite risky when evaluate to investing stocks about the NYSE or Nasdaq. These are why they are riskier compared to stocks traded upon NYSE or Nasdaq. 1. No HistoryLots of those companies are lately formed. They don't have sufficient history or even records. Not having sufficient records causes it to be very difficult to judge the potential of the company. 2. Insufficient InformationInformation for cent stock companies i
s tricky to find, since they don't have to file with the actual SEC. The information provided is generally not from reliable sources. 3. The possible lack of StandardsThe penny shares listed on the over-the-counter bulletin boards or even the pinks sheets don't require any standards to become traded on the actual exchange. 4. Lack of LiquidityPenny stocks don't have much liquidity. When the liquidity is reduced, it may be difficult to find buyers for the actual stock. Low liquidity levels implies that the stock could be easily manipulated. Some traders will buy considerable amounts, hype it upward and sell this to other investors for any higher price. As mentioned before, the price of small cap stocks can be easily manipulated because of their low liquidity. This is often done by deceptive traders hyping their own stocks on on the internet forums and community forums. Some penny share companies deliberately get individuals to hype and recommend their stock. So be cautious of
any suggestions from these on the internet forums and always do you have research. There are good quality penny stocks listed about the pink sheets and also the OTCBB, and most of them are working their method to be listed about the major stock exchanges like the Nasdaq and NYSE. Just remember that there are opportunities in small cap stocks, but they are extremely risky investments that is probably not suitable for just about all investors. If you do plan to purchase penny stocks, be sure you do your research and know very well what you are purchasing.
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View this post on my blog: http://stocktips.valuegov.com/penny-stock-penny-trading-fortunes-article-through-kelvin-p-nashmany/
s tricky to find, since they don't have to file with the actual SEC. The information provided is generally not from reliable sources. 3. The possible lack of StandardsThe penny shares listed on the over-the-counter bulletin boards or even the pinks sheets don't require any standards to become traded on the actual exchange. 4. Lack of LiquidityPenny stocks don't have much liquidity. When the liquidity is reduced, it may be difficult to find buyers for the actual stock. Low liquidity levels implies that the stock could be easily manipulated. Some traders will buy considerable amounts, hype it upward and sell this to other investors for any higher price. As mentioned before, the price of small cap stocks can be easily manipulated because of their low liquidity. This is often done by deceptive traders hyping their own stocks on on the internet forums and community forums. Some penny share companies deliberately get individuals to hype and recommend their stock. So be cautious of
any suggestions from these on the internet forums and always do you have research. There are good quality penny stocks listed about the pink sheets and also the OTCBB, and most of them are working their method to be listed about the major stock exchanges like the Nasdaq and NYSE. Just remember that there are opportunities in small cap stocks, but they are extremely risky investments that is probably not suitable for just about all investors. If you do plan to purchase penny stocks, be sure you do your research and know very well what you are purchasing.
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View this post on my blog: http://stocktips.valuegov.com/penny-stock-penny-trading-fortunes-article-through-kelvin-p-nashmany/
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