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.
The companies do not have a track record, good or bad, for you to take into consideration with.
Penny Stocks Definition
The most important thing to consider is the entire package.
This can be a way for the penny stock broker to be misrepresenting you and therefore not providing the right information about how suitable you are for a penny stock. Otherwise, how would you make the right decision with that stock? He will literally encourage others to purchase the stocks based on either fabrications or simply exaggerations of what the stock will actually do. Beware of any stock broker or other sales person that promises you that you will get the same price that you paid. As we mentioned above, the next step is to keep the penny stocks for a good long time. You do not need to worry about not finding the answers you need.
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