Home Add to Favorite Contact Submit  
             24 November, 2020
 

    
Category:  Articles » Finances » Investing

 

If You are Thinking of Buying Penny Stocks, Here are a Few Things You Should Know

Popularity:
         Views: 1297
2010-08-08 06:50:33     
Article by Mathew

Perhaps you are new to the idea of buying stacks and shares, have a few extra dollars, and are looking to see how to make your money grow. The price of shares for companies like Microsoft is too high for your budget, so what can you invest in?

Penny stocks could be what you want. They are cheap shares, sold at between $1 and $5. You won’t find them listed in the S&P 500 or NASDAQ, so how do you know what companies are selling shares at these prices? If you go to the reference section of your local library you will find a copy of Walker’s Manual of Penny Stocks. This manual lists 500 companies which sell share at these low prices. However, you cannot reasonably expect to get rich quick by buying these stocks. Some companies, such as &-Eleven began by being penny stock companies, so you can make money in this way, but it will take time and you have to do some research and have a little, or a lot, of luck.

You can buy these shares over the counter, on the OTC market. Prices are quoted in the OTC system for example on the OTC Bulletin Board or in the pink sheets. Before buying any penny shares, you should check that the companies are registered with the US Securities and Exchange Commission (SEC). One problem with buying these stocks is that the companies are too small to file their financial reports with the SEC, so sometimes the only information available is false. The fact that there is no reliable information and no minimum listing standards, are deterrents to buying this kind of stock.

However, you should do some research into the companies, for example, what exactly do they do? Do they make products or are they a service industry? Are they involved in manufacturing are they an environmentally friendly company? How viable is the product they make? Would you want to buy it, or do you think it would be popular?

The best thing to do would be to seek advice from a financial advisor before investing money in penny stocks. If you don’t particularly want to do that, the next best advice is to only invest what you can afford to lose. This is true of whatever company you invest in. There is no guarantee that shares will increase in value, and every chance that they will in fact depreciate, so think before you invest.

Specialized in: Penny Stock Scams - Pump And Dumps - Reverse Splits - Scams - Penny Stock Damgers
URL: http://www.pennystockpicksus.com
Print article      Bookmark this page
Related Articles 
Equity Tips By CapitalHeight (Popularity: ): Equity Tips provided by Stock Advisory Company are the work of research and experience of Stock Market. In this section of market the companies provide Tips related to Capital Market both on Intraday and Delivery basis. The Tips are provided by using various methods, software, Charts and many more, and through these methods they evaluate various tips such as stock tips, commodity tips, equity tips, mcx tips, ncdex tips etc.Stock ...
The American Silver Eagle - A Favorite With Collectors and Investors (Popularity: ): The American Eagle is the emblem of the United States of America with its great strength and majestic beauty symbolizing freedom. Whether soaring above towering mountains and canyons or gliding through picturesque valleys at one with Nature, the eagle has unlimited freedom. The Eagle appears in the Seals of many States, on most US gold and silver coinage, and it is used for decorative patriotic purposes.The American Silver Eagle is ...
Tips For Successful Investing (Popularity: ): There is no assured route for achieving investment success, nor for that matter is there any cut-and-dried, instantly applicable, sure-shot formula for making money in the stock market. There are no high-flying stock market geniuses or financial wizards either. Leaving aside the lucky few who make pots of money within a short span of time, for most other people investing in the stock market is just like any other business. ...
What is the Best Betfair Trading Software? (Popularity: ): When it comes to Betfair trading software there are really only two current leaders in this market. That is Bet Angel and Bettrader evolution. Needless to say, it's very hard to choose between the two.Bet Angel is widely known as the market leader. Offering almost everything you could possibly need for trading on Betfair. Grid, ladder, dutching, charting, bookmaking, automation and Excel integration, Offsetting. Advanced charting is also great to ...
Analyzing Investments (Popularity: ): Unlike gambling, it is extremely difficult to rely heavily on your luck or chance to win in the investment world, if you do so, you are very likely to be a loser. Successful and fruitful investment requires analysis, detailed analysis to help you make the best decision and choose your best portfolio. You many think analysis work of course should be done by you analyst, but do you sometimes feel ...


Related Business 
Buying Penny Stocks (Popularity: ): Buying penny stocks – Penny Stocks offer a vast selection of speculative issues for buying and selling low-priced shares. Get the inside knowledge of the prospects and potential of a company before buying.
Penny Stock (Popularity: ): Sirius Stocks has succeeded in bringing our members WINNER after WINNER with our top penny stock newsletter. Our staff and penny stocks scanning methods have proven 100% accurate in finding the best penny stocks that move up in our e-mail alerts.
Big Penny Stocks (Popularity: ): A penny stock is a publicly traded company that has its share price below a certain threshold. Most people now view stocks under $10 as penny stocks, since many companies below that level aren’t followed by the big investment brokers.
Stock Guru (Popularity: ): The best penny stock newsletter for staying informed and selecting winning penny stocks. StockGuru is the premiere web portal for company news, informative interviews, investment tips, and trade alerts for penny stocks, Canadian, and mining stocks.
Value Penny Stocks (Popularity: ): Value Penny Stocks was created by Two Active traders, Steve and Wilson, who have put together this platform in order to provide traders the #1 Penny Stock Newsletter – a resource that actually helps produce real profits for your portfolio. We concentrate on value small and micro-cap stocks that trade on NYSE, NASD, AMEX, OTCBB, and OTC exchanges.
Active Penny Stocks (Popularity: ): Penny stocks are considered as more risky because of their volatile nature. Madpennystocks.com keeps a constant watch on the movement of these stocks and keeps you alerted. Its alerts are based on stock volume and stock news. It even offers the comprehensive analysis of stocks in break out pattern.
Penny Stocks Trading (Popularity: ): The common stocks which are traded over OTC Bulletin Board or pink sheets carrying per share value of $5 or under that are known as penny stocks. They bear absolute low value and carry limited liquidity.
Global Penny Stocks (Popularity: ): The only penny stock site recommended in Barron's and by Forbes, picks stocks trading at under $5 that are on the NYSE, NASDAQ, and AMEX.
Profit From Penny Stocks (Popularity: ): Learn many ways to make money from penny stocks.
Penny Stocks Invest (Popularity: ): Front running is a technique of penny stocks scam. It is also known as insider trading. In this method, scammers use inside information on a stock that's about to take off. They take large positions before the news is revealed.