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.
To be sure, you do not have to pay for joining a penny stock picking service. If you search the internet, you will discover that there are many stock picking services you can join for free. If you choose to join free penny stock picking services, make sure you know what you are signing up for because what is free may not necessarily be so. Searching for penny stocks has become like the old "Gold Rush," and you need know how to distinguish reputable penny stock pickers from crooked stocks promoters. There are many "pump and dump" stock pickers and penny stock promoters and dealers who are just out to dupe you into subscribing to penny stock newsletter scams. Having said that, there are many good paid membership services such as the Penny Stock Egghead you can join. I would recommend Penny Stock Egghead membership service for many reasons: Theirs is a one-time membership fee; it is a very small fee, but you get a lifetime membership that entitles you to be on their mailing list. Once you become a member of Penny Stock Egghead, you will start receiving a weekly list of penny stock on Mondays, with a follow up on Sundays.
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.
Learn to look for these simple things when searching for penny stock picking services:
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
According to Wikipedia, often the stock promoter will claim to have "insider" information about impending news.
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.
If you visit stock investing chat rooms or stock message boards and you see messages from promoters recommending that you should buy certain stocks immediately.
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.
Investing in penny stocks is a very risky business. To ensure transparency and efficiency in the marketplace, the SEC recently announced that it plans to open as many as half a dozen investigations a month. These investigations are targeted at stock dealers, promoters or any one engaging in pump and dump penny stocks schemes to defraud mom-and-pop type of investors. Having the correct information on stock companies, regardless of their size, helps investors to make informed decisions regarding their stock investments. Getting information on micro-cap stock companies is not easy because some of these companies do not file periodic reports with SEC. On the other end, you can easily find information on blue-chip stock companies because they regularly file their periodic reports with the 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.
What you need to know is that OTC penny stocks are also known as microcap stocks. It is a term of art that refers to registered companies whose stock is not listed on the main stock exchanges or is thinly traded. A company stock is thinly trade if there are fewer buyers and sellers for penny stocks. When compared to blue-chip stocks, it is generally thought that institutional lenders avoid penny stocks for lack of information and transparency. In addition, microcap stocks are susceptible to manipulations because of low volume transactions.
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.
You can avoid high risk penny stocks by learning more details at http://getmoneyapps.com/stock-picks
To be sure, you do not have to pay for joining a penny stock picking service. If you search the internet, you will discover that there are many stock picking services you can join for free. If you choose to join free penny stock picking services, make sure you know what you are signing up for because what is free may not necessarily be so. Searching for penny stocks has become like the old "Gold Rush," and you need know how to distinguish reputable penny stock pickers from crooked stocks promoters. There are many "pump and dump" stock pickers and penny stock promoters and dealers who are just out to dupe you into subscribing to penny stock newsletter scams. Having said that, there are many good paid membership services such as the Penny Stock Egghead you can join. I would recommend Penny Stock Egghead membership service for many reasons: Theirs is a one-time membership fee; it is a very small fee, but you get a lifetime membership that entitles you to be on their mailing list. Once you become a member of Penny Stock Egghead, you will start receiving a weekly list of penny stock on Mondays, with a follow up on Sundays.
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.
Learn to look for these simple things when searching for penny stock picking services:
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
According to Wikipedia, often the stock promoter will claim to have "insider" information about impending news.
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.
If you visit stock investing chat rooms or stock message boards and you see messages from promoters recommending that you should buy certain stocks immediately.
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.
Investing in penny stocks is a very risky business. To ensure transparency and efficiency in the marketplace, the SEC recently announced that it plans to open as many as half a dozen investigations a month. These investigations are targeted at stock dealers, promoters or any one engaging in pump and dump penny stocks schemes to defraud mom-and-pop type of investors. Having the correct information on stock companies, regardless of their size, helps investors to make informed decisions regarding their stock investments. Getting information on micro-cap stock companies is not easy because some of these companies do not file periodic reports with SEC. On the other end, you can easily find information on blue-chip stock companies because they regularly file their periodic reports with the 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.
What you need to know is that OTC penny stocks are also known as microcap stocks. It is a term of art that refers to registered companies whose stock is not listed on the main stock exchanges or is thinly traded. A company stock is thinly trade if there are fewer buyers and sellers for penny stocks. When compared to blue-chip stocks, it is generally thought that institutional lenders avoid penny stocks for lack of information and transparency. In addition, microcap stocks are susceptible to manipulations because of low volume transactions.
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.
You can avoid high risk penny stocks by learning more details at http://getmoneyapps.com/stock-picks
About the Author:
To really make money with penny stocks, you have to have investing strategies and tools to help discover the best stocks under 5. For most penny stock investors, the hard part of making money is how to find the best penny stocks to invest in. The art of making money involves learning and discovering the latest tools and techniques to make your online business successful. You can trulyBuy penny stocks using penny stock egghead by referring to our official website right now. Get the latest advice directly from this useful source of information at http://getmoneyapps.com/stock-picks.
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