by Enrique Quezmad
But carrying high risk... And therefore are one of the most enthralling types of stock exchange investments available. Wish to know all about penny stocks? Well, I cannot explain literally everything in a brief article like this... But I can provide you with some of the key info you'll require if you have an interest in selling and purchasing penny stocks...
In technical terms, penny stocks are stocks that are generally available for the public to buy, but aren't traded on any of the formal exchanges like the NY Stock Exchange, American Stock Exchange ( AMEX ) or Nationwide organisation of Instruments Dealers Automated Quotation System ( NDX ). Instead, penny stocks are traded on a dealer network and, as such, are called over the counter or "OTC" stocks.
The first reason which explains why penny stocks are traded over the counter is really because the most relevant penny stock corporations are comparatively little and do not meet the income and asset wants of the major exchanges. Penny stocks also are called "unlisted" stocks since they don't seem to be noted on an exchange but are transacted by dealers who purchase and sell over the telephone and employing a PC network.
Penny stocks are sometimes priced up at less than five bucks per share. Nonetheless they shouldn't be confused with listed stocks that just happen to have had their price fall to less than five bucks per share. In case you are not sure whether a specific coproration is a penny stock company or a listed company, look out for the company's stock code. If it has the code OTC or OTCBB after its name, it's an over the counter stock. An enormous company's stock can take a dive under $5 but still stay on a major exchange OTC stocks are traded on the over the counter bulletin-board or listed in the Pink Sheets because they can't meet the prerequisites of the major exchanges.
Since this piece is all about penny stocks, you could be wondering about the difference between "OTCBB" stocks and OTC stocks. OTCBB stands for "over the counter notice board" and makes reference to penny stock corporations with a subprime credit record. Not surprisingly , OTCBB stocks are higher risk investments than OTC stocks.
What more is there if you want to know all about penny stocks? Well, it's a brilliant idea to realise WHY a company issues penny stock. Fundamentally , it is offered by new, promising corporations searching for investment capital... Or fighting corporations that can't meet the prerequisites of a major stock exchange listing. They could have even been dropped by a major exchange. It's your job to discover WHY a fixed penny stock is a penny stock, and whether or not it's sure to be a sound investment. No question, penny stocks can be fantastically profitable - a stock that rises from 10 cents to ten bucks gives you one hundred times the quantity of your original investment.
On the other hand, make the incorrect call and you will lose your complete investment! If you'd like to know all about penny stocks you're sensible to teach yourself as totally as practical on the subject. Read as much as you can from well respected penny stock commentators and be certain to do your due groundwork on any penny stock you are considering purchasing.
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New Unique Article!
Title: What You Need To Know About Penny Stocks?
Author: Enrique Quezmad
Email: vickygunawan@hotmail.com
Keywords: investment,investing tips,stock market,stock trading
Word Count: 551
Category: Stock Market
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