Chapter 4: Penny Stock Bidding Success - Mark Up Pricing
There are several things to think about when it comes to penny stock investing. In the sale of penny stocks, there is an additional cost to take note of. That is the mark up price. Some broker or dealers will mark up the price of the security to a certain degree. They do this because they have had to maintain an inventory of the product. This usually happens when they need to maintain inventory sufficient to the supply demand that is out there fore orderly and liquid markets.
In other words, to you, this is likely to be an additional cost of the penny stock. This is again the built in cost factor. This cost should be taken into consideration when it comes to your investing strategy as well as what your long term goals are.
Its quite simple.
Buy Penny Stocks
Chapter 2: Your Risk Tolerance and Penny Stock Investing - Not the Same Risk?
Then, prices will rise as the company grows, expands and meets goals. Beware of those that make huge promises that you know they can not keep. The problem is that the stock prices have rises to the level that makes them too costly with too much risk involved. If you are new to investing, this is an important task to learn simply because you need to understand just what you are up against in this penny stock game. When you take the share structure into account, you are sure to see the benefits that are offered or the risks that play into the stock. Yet, that does not mean that it is likely to be that way.
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