Chapter 1: What Is A Penny Stock?
The first order of business here is to define just what the term; penny stock refers to. The bad news is that there are many mixed definitions out there regarding what this type of stock actually is. Therefore, you need to understand what things are considered to be penny stocks and then how to determine what the stock really is.
For example, a penny stock is a common term used to describe a stock that is inexpensive to purchase per share. This could mean:
A stock that is priced under one dollar per share
A stock that is priced under five dollars per share
A stock that is traded on what is called pink sheets
Any over the counter, or OTC, type of stock
The United States Securities Division says that a penny stock is one that is valued under the value of five dollars and is traded either on pink sheets (over the counter) or on the NASDAQ.
If he is after the sale, hes not working on your side.
Penny Stocks Picks
Some stocks are safer than others because there is less likely to be that opportunity for them to implode.
Does it compete against rival companies out there well? This is again the built in cost factor. You do not need to worry about not finding the answers you need. Some will dabble with what is called penny stock manipulation.
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