Chapter 3: Your Broker Set Up - The Problem
The problem with this type of broker is quite obvious. You will not know first hand where the stockbrokers loyalty lies. Therefore, will he sell you a stock that is not doing well? Does he know a stock you own will be doing better in the future and therefore wants to sell it to you? Of course we can not say for sure that a stockbroker will do this or even that he will not. The bottom line is, though, if you are in the business of penny stock investing, you need to know whos behind you.
Many penny stocks are traded in the way of principal stock brokers. Although this does not necessarily have to be a bad thing, it is important to know that it could potentially be there. There may be a conflict of interest in the way of the stock broker and you should know about it before hand.
Chapter 4: Penny Stock Bidding Success - Mark Up Pricing There are several things to think about when it comes to penny stock investing.
Penny Stock Symbol
The bottom line is, though, if you are in the business of penny stock investing, you need to know whos behind you.
On top of that, as you will learn later, there are plenty of opportunities for people to take advantage of those that are looking to invest in penny stocks. If you are looking to purchase a stock, you will need to provide an accurate bid for it. That is the mark up price. The bad news is that there are many mixed definitions out there regarding what this type of stock actually is. If indeed you want to make a killing on penny stocks, you simply must take the time to do your homework thoroughly and use our strategy to make it happen. That means that if a stock is somewhat troublesome in the past, it is likely to be the same or worse in the future.
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