Chapter 4: Penny Stock Bidding Success - Two Prices?
Are you confused by the two prices that are listed? Penny stocks are commonly bid on using two price figures. There are generally two bid prices listed and two ask prices listed. This is called the inside, as well as the outside, bid and ask.
This is the range in which the stock can be bought or sold. In most cases, you will want to consider the outside bid and ask prices as well as the lower bid and the higher ask prices. These are the numbers you are looking for as they are generally the costs that you will find a public customer or beginner investor is likely to need.
Of course, it would be wonderful if we could all invest in safer stocks and count on the money coming in each and every month.
101 Investing Market Stock
Likewise, you have more of an ability to gain hugely than you would with a safer stock.
Determine if the penny stock has had several worrisome reverse mergers as well. There is no wrong answer. Some stocks are safer than others because there is less likely to be that opportunity for them to implode. The question is, what is it that they do? What is the best company to invest in?
|